I would recommend a plasma for the full movie watching experience, the Panasonic P37X10 can be found well in budget...you could even get the 42" version for under £600...if the viewing distance allowed.
Hi, I'm in the same boat as the first poster: have £600 ish to spend on a 32" LCD, mainly for gaming (and I really want something that will make my Wii shine). I have looked at the following (you may want to check these out wasdy):
Sony Bravia KDL32V5500U
Sony Bravia KDL32W5500U (not sure what the big difference is in those last two models)
The W5500 has 100Hz whereas the V5500 is only 50Hz, there may be other differences but that's the big one, this means that the W5500 has more input lag than the V5500, so it may not be the best choice for gaming. Not much will make your wii shine though to be honest, a decent CRT is probably still the best for that, although I don't know much about what the wii looks best on (I just know that it's the thing most people struggle to get a good picture with).
But seriously, to the OP, I can't think of a better £600 TV than the P37X10 for watching movies, only shy away if the room is very bright or you spend several hours on the xbox at a time