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Ask Engadget HD: What size HDTV should I buy?

Since we're totally willing to take out a wall to install Panasonic's 152-inch behemoth in our own home, we're probably the wrong ones to ask this question -- which where you, dear reader, come in. Our friend Michael is ready to buy a new HDTV and is asking how big is big enough / too big:

"I'm going to be purchasing my first LCD, and I'm coming from a very old, 27" Zenith CRT. I will be sitting about 6 to 8 feet away. I have asked salespeople, forums and other people, but cannot figure out the size I need. I went into Best Buy several times to look at the LCD's, but they all look "small" in the store, and I know once I get them home, it will look a lot bigger. I will be using the TV to watch a lot of HD sports, TV shows, the news, Playstation 3, some movies and some standard definition. I do not want to feel "overwhelmed" by the size, or have a "movie theater type experience", but I also don't want to regret that I should have gotten a larger TV for a little bit more money. I know it's a lot of personal preference, but in general, from 6 to 8 feet away, would a 40" or 46" LCD be ideal? It would be in an apartment living room, and I am planning on getting a Sony EX500 LCD."

We've addressed this before, and our old buying guide for choosing the right size may still be a useful read (rule of thumb: Distance away from the TV (in feet) x 6 for HDTV (in inches)) but 2005 was a different time, now there's many 1080p screens out there, Blu-ray discs to watch, and videogames with lots of teeny tiny text you'll need a massive screen to decipher clearly. So do you think Mike has the right idea size wise, or is there anything else he needs to take into consideration before buying? Speak up in the comments below.