I'd say that color quality/features is probably more important than resolution at the 37" size. The 37" LCDs are either in the 768p or 1080p resolutions. When I was shopping for an LCD some time ago, there was one 1080p LCD, but many HD broadcasts in 1080i didn't look better overall on a 1080p display (this was the Westinghouse model).

HD over cable or over-the air are so heavily compressed that compression artifacts usually negate the benefits of resolution. However, if you plan on watching HD-DVD or Blu-Ray movies, I can see there being a different in the long run (many current movies aren't transferred to the full potential of the new formats).

The other thing to consider is that your TV have adequate inputs for your AV devices.

I've also found out that many people have suboptimal vision (being right at the edge of needing corrective vision) and that HD at 37" exceeds their visual acuity. Finding a good retailer that is showing real HD content will help you decide the importance of resolution versus color/contrast/black levels/features.