Turtle Beach X41 Xbox 360 Wireless Gaming Headset $105 at eBay
B&H Photo Video has the Samsung LN52B530 52" 1080p LCD TV for $1200 with free shipping. [Compare]
1080p resolution, 60,000:1 dynamic contrast ratio, 6 ms response time, Energy Star 3.0 Compliant, 3 HDMI v1.3 Inputs, RF Input for Antenna/Cable Signals
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read reviews on the store before purchase
The 54" 1080p Panasonic Viera from Sears for $1099 is a bigger and better TV at a better price (even better still if you pay with your Sears card, since you get $100 off).
BTW, the Panasonic to which I refer above is a plasma. Unless you have a lot of light in the room, plasma is the way to go.
If rating by image quality alone Plasma is the way to go (I own one for the primary living room).
However power consumption is still significantly worse on the plasma, and burn-in can still occur if you're using static objects in applications such as Computer screens/game consoles with lots of static images.