Yeah, on my HTPC i was using a Creative Labs DXR2 card for DVD-output and an Antec TVator Exec for desktop output. I think I paid about $90 for the TVator. It was kind of cool because it had a VGA pass-through and S-video/composite outputs.
The DXR2 had very nice video quality output. The TVator had noticeable color-banding during movies. I guess it would only convert to 16-bit color. 🙁
So, if watching DVDs is his only goal, he should pick up a DXR3 or one of those Hollywood cards.
If he wants to get some gaming in as well, he might want to grab a new video card. There's a lot of cards in the $85-and-below range that will outperform the GF2 GTS and have TV-outs. 😉