Most of the specs you see for TVs can be deceiving, especially if they aren't real-world numbers. They don't tell you what resolution any of those specs were tested at. LCDs still have some trouble with blur because of the time it takes the crystals to move/twist/etc. Plasma and CRT have virtually none in that aspect. But anything at a 1080p resolution is going to suffer because the TV has to work that much harder to try to achieve the same picture, plus the bandwidth and framerate is tougher to maintain.
Granted I haven't heard much on the specs of your TV, but most 1080p programming truly runs at only 24 or 30fps. So even if your TV said 60Hz it's really displaying the same frame twice in a row before displaying the next one, or 120Hz would be 4 times (in the case of 30fps, 24fps is a different story). If you really wanted to run a legit 60fps/Hz you'd have to drop down to 720p. It's going to run a lot smoother, and unless your TV is over 50" you won't be able to tell the difference in picture from over 8 feet away, which is the standard viewing distance.
The HD pictures you get through dish or local programming is 720p/1080i, and typically at 50-60fps. Blu-Ray/HD-DVD movies are no different than standard definition movies and are displayed at 24fps, because that's the framerate at which they are filmed. There's only more detail in picture because there's more pixels to work with. It won't be any smoother though.
I used to work at Best Buy, and if I said any of this to a customer I'd probably get crucified haha.