HD tv Is it worth it on a budget?

Hello , I am on a budget but was considering getting an HD tv for some one for Christmas. They really would like an HD tv but I was wondering If it is worth going HD at a price point were 700$ is already a stretch. Would I be wasting my money trying to upgrade to early? Or is in now the opportune time to join the HD revolution? I was looking into getting the best machine for around 700$ and figuring because LCD tend to be better at the smaller level, i am thinking 32-40ish inches. From what I read LCD is the beter choice, I am scared of image artifacting on the LCDs though. Being that I am as mush as a viewer as the person getting the gift I want the best quality. Any help or recommendations are very appreciated.