Best 32 inch FULL HD T.V would be the:
LGLH70
or the Toshiba 32RV600
I've not seen the newer models, so I couldn't say which of the current ones will be best for your needs.
It would also help, if you tell us the primary usage of the T.V before we give out blind recommendations.
Now, there are some advantages in picking up a 1080p T.V even at that size (32) and here are the following:
1)For High-Def movies:
1080p bleeds out more refined pictures over a 720p, and with trained eyes you'll notice that 1080p gives out cleaner, crisper pictures. The drawback in getting a 1080p T.V at that size (32) is the fact that you'd have to be close to the unit to appreciate it, and I don't think you'll like that.
2)For PS3/Xbox 360:
Even at 32 inches you'll notice a difference in picture quality over a 720p version, if the game your playing is a native 1080p game. There are, however, only a few games right now that supports a 1080p native rez.
3)For PC use:
Needless to say, if you intend to use your LCD as a PC monitor you'd like to have a monitor with a higher native rez.