How will non-HD digital...

Here's the problem. The Kid wants her own TV so she and the youngest won't have to fight over Disney and Noggin channels. The free extended cable line is located in thier room while the three sets are in the playroom, living room and master bedroom(all connected to DirecTV using four lines with the main TV using two). The bill is already $112 and I'm supposed to get rid of Showtime and HBO, but some good boxing will be on this month and in December.
Another problem is that I want an HD Tivo, but it can't be used with DirecTV and obviously I can't use my current Tivo on fiber optic(Surewest if I switch since the phone and PC have this service).
The cable line doesn't offer the second Disney channel that shows the dreaded "High School Musical 3" and I don't want the Kid to freak out.

All TV will NOT be digital.....basic cable may not feed in digital form but a still analog captive signal.
This transission has nothing to do with HD content or even digital, it is about the Government reclaiming frequencies they need for other use. Cable basic programing isnt even going to be digital on many systems including Time Warner but its a direct feed freeing up these already mentioned frequencies. While HD is more and more available it has nothing to do with this change and stations do not have to provide HD content if they dont wish.
If you do have old sets that wont be hooked up to cable or satelite call 888-388-2009 and recieve 2 vouchers for $40 off price of converter box.

In Feb. 2009, all television terrestrial broadcasts will be digital and not necessarily in HD. Many programs will be fed in SD which is 480p. You will need an antenna and a digital ready tv that has a built in digital tuner to receive these free broadcasts of local tv station off-air broadcasts. A DTV converter (about $50) will allow you to view DTV on analog sets.

I have direct TV. My wife bought a 32" LCD HD Sony last year, I found the picture not as good as my 34" wega sony hi def CRT. However, in June I went to a 50" Panasonic plasma and the picture is better than the Sony CRT was. Unless there are constraints of space or money don't buy a 32". Isn't everything going to be HD in Jan? The non HD picture on a 32" wide screen is quite small which is why I bought the 34" 4x3 instead. You can crop it or stretch it at the cost of distorting the picture. Again , will there be any non-HD transmissions after Jan? I had thought that was the purpose of going to digital since all digital TVs receive HD. Am I completely misinformed?

It depends on source, Sateleite can look different from cable. One advantage is at that size it will be much less of an issue than larger sizes as the bigger it gets the flaws are greatly magnified.