I don't know if it's true or not but TV's like cars you need to see before buying. I wouldn't just go and plop down money on a TV over the internet until I've went to the store and took a look.
I got mine for about $450 2 or so years ago. It was originally 6something but I stacked a lot of discounts and price matching. It's a 27".
You know the TV your looking at looks like my brothers. It has a component input but it's your traditional 4:3 TV. It will black bar when you put it in 16:9 mode. I think it will do 480p on his. As I mentioned before I find a place that has it and take a look at it. If you still seriously want it ask if you could see the manual and it should tell you it's capacities. I personally get one that would at least do 480p and 1080i. That way you can benefit from an HDTV source, 720p is not as important because I always hear that 1080i looks better anyway and 1080p TV's are like buying a tuba or small car. I think you would be more satisfied if you just spent the extra and stepped up into their HD-Ready category. Though I can't stress enough the importance of going to see the TV in real life.
You might find one you like more or the picture might not be up to your expectations.
Edit:
Maybe something like thisIt seems the models with the H in them are Toshibas HDTVs and the ones with the A or the traditonal analog.