PS3 / 360 SD graphics

So I just got my letter from the IRS confirming that I'll receive a stimulus check in May (and Pennsylvania passed / is working to pass a state stimulus package), so I've been thinking about what to get. I was going to apply it to one of my student loans, but I owe like $6,000 on it (still in school but this one you pay interest each month) so I don't think it will make a dent...Plus my dad said even if I pay $600 toward it my monthly payments wont go down (I guess because I'm making interest payments..I think they would go down, but he says they wont).

Anyway, I have a 27" standard def TV in my room, and was thinking of getting either a 360 or a PS3... How would the graphics look on a standard TV? We have a 360, but it's a family machine and has to stay in the living room, where we have a big screen HDTV (and it looks incredible), but I was wondering if it'd look as decent on my TV.

If I were to get a 360 I was thinking (depending if I get a state check too) that I might be able to get some little HDTV (like this: http://www.bestbuy.com/site/olspage.jsp?skuId=8454415&type=product&id=1184369165654) for my room....

Do you think it would be better to game on a 27" standard def TV, or the 19" HDTV (720)? That would be like the size of my monitor, so that kind of turns me off as I like to game from my bed....

What do you think?

I've put my PS3 on a 27" SDTV a few times, and for the most part the graphics still look very good. Definitely still a very big improvement from last gen, IMO. However the one problem I have is that some games (like Dead Rising, for instance) tend to use rather small text which becomes close to unreadable on an SDTV.