I have that exact model Sony sitting in my garage. I also have some KV27's and a KV24. I would agree that the 32 "is too big unless you're building a showcase cab. The cab will be so heavy it'll be practically immovable, and the screen will be too big when you're trying to play it. I'd take that rule of placing your head 32" away from the screen as a bare minimum. It's not good for gameplay when you have to look around constantly because you can't see the whole screen at once, and having a big bright CRT too close to your face isn't too good for your eyes; the combination can give you a headache.
I'm going to put KV27's in my sit-down cabs, space the control panel so that you're sitting fairly far back, and use tinted glass to cut the brightness a bit. For a stand-up, I might go with the KV-24.
Whatever you do, I'd build a quick and supply mock-up that will allow you to playtest your design for ergonomics, and get a feel for it for a few days, before building the final version. Otherwise you'll be noting the mistakes in your final cab as you plan a whole new one.
If you want to get proper arcade quality picture from these TV's, check the link in my signature.