Here is my set up in my home office. I use an entertainment unit for my desktop computer, 15" CRT monitor, 26" HDTV, audio receiver with stereo speakers that I use when watching TV, printer, computer speakers with sub-woofer, and plenty of storage below. I bought a VGA cable connected to my computer which I can swap connect the CRT or the HDTV. It all works great. Since the CRT is just below eye level and the HDTV is about a foot higher, I have it tilted towards me for better viewing. I use the CRT most of the time; but when I do a slide show, watch something on Hulu or other internet TV channel, or watch a video played on the computer's DVD drive, I use the HDTV. My TV is connected to DISH Network. I do not have a dedicated LCD monitor, but when I use my brother-in-law's computer with his LCD monitor and compare it to my HDTV setup with my computer; the visual quality is better with my setup -- at least in my opinion. For example, when I do a slide show with a black slide, it is pitch black without any distortions, wavy lines, pixelations, etc. My only recommendation is to get a plasma HDTV, if possible. The reason for this is that my plasma HDTV is far superior to my three LCD HDTV's I have when watching the same HD shows. Therefore, I would think that this would be the case if a plasma is connected to your computer.
CNET bought a house!