a2000 and a2020 are the exact same tv except for the silver/black frame. also, if you are considering one of these tvs don't think you need an upconverting dvd player, the picture is excellent from a standard progressive scan dvd player as well. the sony does a better job upconverting than most...
it won't just magically work, you have to setup your video card software to output the signal. i could give detailed steps for ati, but i'm sure a simple google search will provide all the info you need. bottom line, it will work with proper setup and you don't need to spend 3k that's for sure.
i live in a small apartment as well and sit 7-8 feet from my 50a2000. i would not recommend any larger than this for your viewing distance. i went with the a2000 over the a2020 because i was able to save about $400 and there is no difference between the two except for black versus silver frame...