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i vs p
1080i stands for 'interlaced' and the p stands for 'progressive.' This refers to how the picture is 'drawn' to the screen. In an interlaced picture the TV draws Every Other line and then comes back and fills the other half of the lines. This happens so fast that our eyes don't perceive this directly. However, it can result in a noticeable 'flicker.' (standard TV's use interlaced).
Progressive means the entire frame is drawn line for line, and results in a clearer, flicker-free image.
And the above comments were basically correct, your eyes won't notice any real degradation in the picture but it won't be as sharp and the smaller the screen the less effect it will have.
If you are one of those people who have to keep your computer monitor set above 60Hz, or DLP TV's cause you to see 'rainbow patterns' or 'screen door' patterns...then get the 1080p for sure. Otherwise, you're probably fine.
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