Moved up after this years con to a 23" Samsung flatscreen, and I'm very very happy with it. (196$ at sam's club)
I do think if you go with a 42" I'd go plasma for the faster responce times.
We also got a 42" plasma at christmas time for the living room. And while I love my 23" monitor, that 42" plasma is awesome.
This is a squad mates setup with a 42" plasma.

I don't know that you'd need 8 - 10 feet, I think for a 42" you could get by pretty nicely with 3 - 5 feet viewing distance.

....Bonus was much more than I expected and I found this well within my budget. Should I have been smarter and responsible? Probably but I've had my ribs kicked in for the past two years and decided to get something for
myself that I wanted for a change. Samsung 42" HD Plasma. I dusted off my gear and played a little offline last night and it's beautiful.....
Short answer, if $$$ is tight, treat yourself to a good new 23-24" flat screen.
If $$$$ are in good supply, look around for a good 42" plasma, even if you have to redo your computer room to make it work.