The BV7-32 MK3 has a good screen for standard definition TV as the pixel count is higher due to the size of the screen.
The BV7-40 MK2 was a good TV for standard definition TV as it pre-dates the 1080P screen that appeared in the MK3. However, HD might be an issue, particularly as there is only that poor single DVI input. Effectively, it's not really a long term TV choice for me. BV7-40 MKIV upwards is the best option. MKIII displayed blacks poorly and struggled with shading.
BTW do remember the biggest difference is the size of the screen. Once you've owned the 40", the 32" seems tiny in comparison.