I ultimately chose the 60hz over the 120 because I actually prefer a mat or semi mat finish.
Of the glossy finish sets, the 120 was a bit better, but a lot more expensive.
If the set is too big, SD, XVID, DIVX etc will look pretty gross even with a good upscaler.
Paid $999 for my Samsung 4061 at Frys over the holidays, but there are lots of good sets.