Playstation 3 and Xbox 360 wouldn't show its true potential unless the display is atleast 720p..
Though you will be able to have the game up and running but some of the text is hard to read(i have same problem when i connected to my CRT TV).. there is also one more option , if you have a HD monitor then u can connect it with ps3/x360 and enjoy
The Choice between xbox 360 and PS3 basically is between its exclusive games.. for me its God Of War that came into decision making.
the PS2 however is optmized to be used to be CRT, and with component cable it looks decent on HDTV too, and it has a gigantic game library