i have a 32in led lcd tv hooked up to a pc that i watch netflix and dvd's on. it's a toshiba and it has a "gaming mode" that sets the response time to something in the range of ~2ms (supposedly) while playing video games "for short periods of time", according to the manual. i haven't tried it, but then i'm not gaming with it.
if you're going to buy one, get a full led backlit (not edge lit) 1080p 120-240hz, if you can afford it, especially if you're going to be gaming on it. you will probably be much happier with it than you would going cheap. i went cheap but i don't have more money than sense and my expectations aren't in fantasy land. also be aware that color adjustments might depend on which input you use, vga = video card controlled adjustments, hdmi = tv controlled adjustments.