Yes, id go for a DVI too and get a simple adapter for DVI-to-VGA.
Regarding the panels: There different Panels on the market, like MA, MVA, TN and S-IPS. TN-Panels are best for gaming, but as the guys above said they tend to produce Dithering on Images. U can see what dithering looks like when u turn ur CRT to 16bit colors and then take a look at some images. Looks similiar but not that extreme with a TN-Panel. Advantage of TN-Panel over the another big type of Panels, the S-IPS-Panels, is the speed, which means that for gaming u should buy a TN-Panel and if u want a screen for doin alot of image editing and stuff u better go for a TFT with an S-IPS-Panel, also these have a higher view ° angle. If ur doing only a few image editing from time to time its no problem to have a TFT with the cheaper TN-Panel, cuz this dithering effect is only annyoing when all u do is concerning images and pictures. If u do some of this and and some of that then TN-Panels are good enough.
Some TN-Panel TFT´s u may like to check the prices for:
Hyundai ImageQuest L90D+, 19", 1280x1024, analog/digital, Audio with TN-Panel for about 350-400Euros
BenQ FP71V+, 17", 1280x1024, analog/digital, TN-Panel for about 300Euros
http://home.arcor.de/r00f/1.jpg
BenQ FP767 version 2, 17", 1280x1024, analog, Audio about 220Euros. TN-panel
another advice is: lot of shops offer pixel tests, this costs about 20-40$ and guarantees u that u will get a screen without dead pixels. I think its wort the extra money.
btw i must lose a word on the fukcing response times: PLS STOP TAKING LOW RESPONSE TIMES FOR SERIOUS OR AS A SIGN OF A GOOD TFT! It makes no sense, since every manufacturer is doin their own kind of testing their response times. Response times are far from being a standard, some meassure the times between black and white, other between different scales of grey and u never can be sure what the heck ur manufacturer is doing their. Response times exist, but their impact and meaning is ways over...erm...you know what iam trying to say. They are just not comparable between different TFT and thatswhy these stupid numbers should be the least to care for. Sry, but they are just a marketing gag to give JoeSixpack a feeling of improved performance, hope u know what i mean. My english is fukced up, so i wont be explaining the technical side and why response times are crap for customers since todays response times are by far fast enough for every kind of usage, gaming or whatever. What u should look for and compare to other TFT`s are: the type of the panel (eg TN or S-IPS), Contrast, Brightness and some other specs. Response times dont matter any more.