Right now i am using a 720p 32in lcd tv and i am looking to upgrade to something with a higher resoluion. Should i get a monitor or a new tv? Is there that big of a difference between 2560x1600 and 1920x1200? By the way i use my monitor for gaming and watching movies. Any help on this topic would be very helpful. I tried searching for some posts that were similiar and recent but could not find any.
There is some vital information needed before a responsible suggestion can be made.
What is your Video Card? The higher the resolution (L*W) the more work the video card has to do to keep up. Currently you are using 720p (1280x720=921,600 pixels) so to upgrade to a 1920x1200 (2,304,000 pixels, 250% of your current pixel count) or 2560x1600 (4,096,00 pixels, 450% of current) will put MUCH more strain on your video card, and thus, will be devastating for performance if your card is running maxed out @ 720p.
The difference between 720p and the resolutions mentioned is pretty big. If you have the hardware to push it, higher resolutions do look much better. Think about the difference between SDTV (640x480=307,200 pixels) and your triple pixel count 720p, and you might get an idea of how higher resolutions make things look better.
As of right now i have a single 4870 but i am willing to upgrade my video card. I guess what i want to know is if you can really notice a visible difference between 1920x1200 and 2560x1600 in games. And if for the same money if i jst buy a large 1080p tv would it be better for games. I guess size vs resolution is what i am asking.
A 4870 will not run past 1920x1200 without significant performance loss. It is personal preference, to be honest, you may think a 30" 25x16 looks better, you may prefer a 42"+ 1080p LCD. Try to get some demo time with different screens, whether in a store or through a friend, before you leap into purchasing components.