Why would anyone recommend an LCD HDTV? They're expensive, display poorly at non-native resolutions, have bright blacks, and back color accuracy.
The best picture I've seen is Sony's XBR, a CRT HDTV. Im not exactly on top of the market though. But that doesn't fall within the $500 limit.
I was thinking about getting an HDTV this Fall/next year, but I think I'll wait until I graduate from college, save up some cash, and get a bitchin HDTV with an awesome speaker setup.
I just want it to be at least HD so it's up to date for a while, seems the samsungs are the best bet in the $500 range.
Do you have HDTV signals for the TV? If not, you may want to consider a normal TV if your not using it for next gen gaming/movies because normal TV on an HDTV is ugly.