Good point. And if you can save up another $150 before then, you will get into another league of TVs. $450 will get you solidly into the 32" class of tvs manufactured by the major companies. You could get a very nice tv for $450.
As far as the cables go, you should worry about how you connect the stuff you own now. That's probably a standard coaxial cable for the VCR, and component cables for the video game. HDMI cables are going to be what you use to connect to anything you buy in the future, like a blue ray player. Any tv on the market today will accept a coaxial cable and component cables and also have a HDMI input or two.
Interesting that you have a VCR. You must have cable service? The tuner in a VCR won't work for over the air tv signals anymore. If you have cable service and you are able to pass the signal through the VCR, then that means you don't have any high resolution content, and the resolution of the set doesn't matter.
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