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That looks very similar to my set-up. I have a tower that is plugged into my flat screen with a HDMI cable. Nothing like being able to surf from the couch.
No, it's not a touch of color, if it's 42 inch than it's a plasma, and most likely an A450, 720p somewhere around 20,000:1 contrast ratio. I used to sell TV's...the TOC starts at the A630 model.