720p isn't perfect for gaming, but it should be more than fine on an 37 incher. 8ms isn't extremely fast (from what I've seen) but it doesn't sound bad to me (I could be wrong with the response time part, could anyone chime in on that?)

Important part: Make sure it has a component input, or you have an HDMI cable, or you won't be able to hook your Xbox up. (Unless you bought the Elite, it comes with an HDMI cable.)