LCD Frustration

I am currently looking for an LCD HDTV for the sole use of playing xbox 360. I would like to keep the price of the tv in the$600 range.That limits me to tvs no bigger than about 26". The issue im having is that every tv I look at has a 8ms response time. Ive heard 8ms plus causes ghosting.

1)Is this true?

2)Is it really bad?

3)Is there a way to compensate for the ghosting say with the 360 VGA cable?

Any help would be much appreciated.

Thanks,

Ashton