Keep in mind that, when you use a TV as monitor, all windows-related handling (like “windows explorer”, “my computer”, “settings”, “display settings” etc) are very hard to read. Like Taxman says, the resolution on your TV is far less. So text is hard to read. (don’t even try Microsoft Word on your TV;))
A TV is on the other hand better for video; the lower resolution suits fine for compressed video (DivX) and ugly coding-artefacts are not shown on TV.
Therefor, I have connected both a TV and a standard PCdisplay to my pc. The TV for movies, the other display for windows.
(the TV is attached to the TV-out; S-VHS).
WIth a Matrox G550 card (DualHead), there are two VGA/RGB outputs (the second needs an adapter though). With a special cable, the second output can be converted to S-VHS. This setup gives a much better quality on your TV.
(a standard S-VHS TV-output eg like the one on the ATI Radeon gives a weaker signal)
With the Matrox it’s very easy to make DVD backups on videotape. The converting cable has two outputs; one S-VHS and one compsite. I attach the S-VHS to my VCR and the composite to a TV.
Previewing on the TV to tweak the output (removing black borders, setting up the right aspect ratio etc) and when it’s ok, recording to VCR.