Tough to make your budget, with a quality 32" LCD, but you can with good shopping. First, don't bother looking at the 1080p sets, as you can't realistically tell the difference from a 720p/1080i resolution, and you will save money.
The top two brands in 32", for BOTH performance AND reliability, are Panasonic Viera and Sony Bravia. A little bit less expensive, but still good quality is Toshiba Regza followed, perhaps, by Sharp Aquos and Samsung. If you can't afford one of these brands, do yourself a favor and wait while you save up so you can get quality.
With that cash, it's a limit, so here's the best advice I can give. Do your best to get a Samsung, Sony, or Sharp LCD with that amount of cash. The cheapo BenQ, Maxtent and such might be a bargain, but the image quality is poor. In that size and price range you can't get full hi def of 1080p, but don't worry, you won't notice much at such a small screen size.
Best of luck.
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