after calibration, my 32" Sharp Aquos LC32D41U is amazing. then again, I got the tv for 899 at CompUSA.... so that may be a bit out of your price range
but its easily one of the best 32" LCD's, especially after professional calibration... it's amazing. i gotta get used to LCD black level... had been used to it for video games (for the most part) on my PC monitor, but tv's do have a little bit better black level (in the land of LCD's at least), but still no where near as impressive as the other display methods, especially not plasma. sadly, for the price can't do much better. but everything got so much better once it was calibrated.
good luck picking one. i was looking at the Vizio and others and trying to find a cheap unit, and I progressively got into high price ranges because I am picky as hell and couldn't decide to spend a money on a unit that had things I didn't like about it.
as far as that HP goes... it's essentially the same as the Sharp LC32D40U, which is the 32" sharp model that is made by the same manufacturer that makes the Insignia brand, some cheap china factory. if you can find a good deal I'd say go for the Sharp LC32D40U, that is, if you can't find a great deal on the D41U as its essentially the same specs, but made by Sharp and vastly improved quality all around.
in the $700 and under range, I'd say the Vizio is what you want. have heard pretty good things about it from avsforums.