AJ, to use Sky digital, you don't actually need a digital TV. It will bring life to your old one. Can't remember sites at the moment, will look some up when I get home.
One TV I can recommend, I have one, is the Toshiba 32in widescreen with surround sound, absolutely brilliant, was around 1200GBP at comet, can be got mail order a bit cheaper. But if you want to spread the payments comet is a good option. model is 32wd98 I think, it has a 100 mhz screen but no inbuilt digital decoder if that is what you mean, connect up a digi box and DVD and it's like being in the cinema.