You can get a GREAT 42" plasma for $2k. Get the Panasonic TH-42PD25U or TH-42PWD7UY (depending on which one you like the look of). Both are excellent ED units, with 4000:1 rated on/off contrast, 10 bit processing, 1536 grayscale (2048 in digital), and 60,000 hour halflife. Halflife is the time it takes to reach half brightness, at which point, it's still brighter than a typical CRT will ever get, even brand new. Halflife also relates to burn-in resistance.
In terms of cables, I'd suggest running:
HDMI to HDMI
DVI-D to DVI-D
VGA, high integrity 3-coax type
5 RG6 terminated in RCA's or BNC
1 RG6 terminated in F-connectors
Power