I live in New Zealand so hopefully the terms aren't different.

I want to know that if I was to get an HD Ready Television which I would only be playing PS3 games on would it be capable for displaying some games in 1080p or will it go to 720p maximum?
I know most PS3 games are 720p but I guess a few games might be in 1080p. Would the quality be lower for those games? I was thinking of a 42" Plasma but the HD Ready is so much cheaper than a Full HD. It's strictly for gaming but I don't want to have bad quality or if in the future most games are 1080p unless it can play in 1080p.

So does a HD Ready TV have the capabilities of displaying 1080p with the HDMI cable? Thanks.
This is the TV I was thinking of getting but I have no idea if it has 1080p capability or what the resolution is.

http://www.panasonic.co.nz/viera/plasma/th-p42x30z.html

It most certainly does, I too have a HD ready TV complete with a ps3 and it's shown in 1080p, however you must make sure the HDMI cable is 1080p capable.

It actually depends. The first "high definition" TV's were only 720p and are considered HD. When new TV's came out, the resolution standard for "HD" became 1080p and this was considered "true" HD with a resolution of 1920x1080. Look up the model of your TV online or contact your TV's manufacturer.