Hey Sean, you have a 32" TV so I'll ask you too; how far do you sit from your TV? I saw where Mike said that twice the diagonal distance of the TV is a general rule. I sit about 9 feet from mine and I wonder if that is too far (especially for 2.35:1 DVD's)...any thoughts?? I think I would move my couch closer if I knew it would help, but it would be a pain in the rear just to "try it out"
Mattes rule! A surprisingly effective and cheap tweak. I used foam-core cardboard, attached to my TV using adhesive-backed velcro strips. I also hung black fabric from the bottom of the matte; it blocks the lights from the stereo equipment, while allowing the remote to work. Also, I cut the matte to fit a 2.35:1 image on my TV, then slit the matte further, so the top/bottom of the matte could be folded back to fit a 1.85:1 image.
As for lights: I wear contacts, and I've always been bothered by watching TV in a dark room -- I get a slight glare. In the past I would would turn on a hall light or a light in an adjacent room to provide a soft glow. Recently, I placed a $5 fluorescent lamp behind the TV, with a few sheets of white paper over it to soften it. This is exactly what I've wanted all these years! So, if you prefer to watch TV with a little light in the room, try a light behind the TV.