I dislike this HD ready and full HD nomenclature cr@p. Simply state 720P or 1080P (full HD). I think this HD ready thing came out 2-3 years back and for the whole duration of HD brodcasts prior - either via cable, satellite or free to air TV or via D-VHS tape people called HD, simply HD and it referred to 720p or 1080i even p.
Anyway 1920by1080 or 1280by720 are the two resolutions, they are both widescreen ie 16:9 aspect and their signal can be obtained from computer sources (HD video files encoded in full HD or 720p), HD-DVD players, D-VHS players, DSTV (720p), BluRay, consoles and some PC games. In addition there is user generated content from cameras both still and now video.
Screen size? As a rule of the thumb sit within 3 vertical screen heights to get the full HD effect, sitting further away diminishes the resolution and pretty soon the picture looks like standard definition.
LCD is great but Plasma offers best contrast, widest viewing angles and now plasma sets are appearing which offer full HD picture from 50 inches up, some manufacturers are producing 42 inch full HD plasmas too.
As for sitting too close, sitting closer achieves an IMAX like effect and you can either buy a 24 inch LCD and sit close and get that cinema feel or buy a big 50 inch plus monster and sit reasonably closely.
Alternatives to HD are personal HD viewing glasses - there are now some in 720P and projectors - the full HD variety being very expensive, some cheaper 720p models are available, I saw one at Makro 6 months back for R10K or so,
at 1280by720 native resolution.
FYI, the sets in shop showrooms are running in 'torch mode'. Their settings are usually maxed out and as said a computer generated HD source optimised for colour vibriance is employed to shock and awe the customer into buying an overpriced set.