Wii

Wii is not an HD console, so it's not fully capable of reaching the heights of resolution that other consoles and/or current high-end electronics can reach. However, it is more than capable of having great picture on an HDTV. I myself have a Vizio 26-inch LCD, and I have had no issue whatsoever with the graphics quality, even when I first got the Wii hooked up to it. The Wii will conform itself to your TV's size, and within the Wii's system settings, you can set the console to display in 16:9 widescreen. Individual games will also play in widescreen, either by reading that your Wii is in widescreen, or via their own in-game menus (for example, check Brawl's options menu to set it to 16:9).

In addition, if you purchase Component cables for the console (there are official Nintendo ones you can purchase online or at a Gamestop, and places like Best Buy have their own 3rd party cables), you can go back into the Wii system settings and set its resolution to 480p. This will grant you the best possible graphics quality you're gonna get out of the Wii.

Be warned, though; Since the Wii is not an HD console, there have been reports about games lagging, especially if component cables & 480p are used. However, this seems to be most prevalent in GIANT TVs with 1080p and Plasma screens, and is far more evident in older games downloaded off the virtual console than newer ones. I myself experience no lag whatsoever on any of my games, and neither should you with a simple 32-inch LCD, especially if you don't even bother getting component cables.