Yes, I do think you absolutely do need some more HD advice.
First of all, a set that is 720p can also display 1080i.
I think what you're trying to say is 1080p.
A 42" at viewing distance of 10-12 feet is very adequate for up-converted DVDs.
With my 42" 1080p SHARP AQUOS and my 1080p up-converting Oppo DVD player, 10 feet is the perfect viewing distance. Unfortunately, this is on my bed. My normal viewing distance is about 8 feet and I can still make out some pixel dance...as I like to call it.
But back to DLP sets...one of the cons to DLPs is that they get a "rainbow effect" around their images due to the mirror system that they use. Think prism effect if you will. Now this problem may have been somewhat alleviated in more recent models, but I know when I was first researching HDTVs, the rainbow effect and the short bulb life for DLPs kept me away from one.
Actually, if you want a good 42" set, I'd go with the new SHARP AQUOS LC-42D64U. It currently runs at about $1350 or so on Amazon. It's just like my D72U, but in a thinner bezzle. It's only 1.5" wide, so if you're wanting to wall mount it, it'd be better than a RP DLP.
I just also noticed that the 46" model (46D64U) is now running $1615.
But one of the most important specs you need to look for in HDTVs is the response time. Measured in milliseconds (ms), is the time it takes for a pixel to change color. The standard time up until last year was about 8ms. In fact, I notice that most Samsung models are still in this range. But the Sharp models, as well as mine, are now in the 4ms range.
In comparison...a regular old CRT television had a response time of 1ms. A computer flatpanel LCD screen is about 2 ms which is needed for fast moving games at high frame rates. For television broadcasts and for movies, with frame rates of 24 or 30 frames per second, a faster response time really isn't needed, comparitively. A plasma TV is about 2-4ms, I think. And now the new standard for LCDs is 4ms. I don't know what DLPs are clocked at.