If you do get a video card with a DVI connector and a LCD monitor with DVI input, you'll get a better image. Most cheap video cards like the Radeon 9x00 and GeforceFX 5200 have both a standard VGA and a DVI connection. The best way to judge a monitor though is to go out and look at one in person.
I have looked at those NEC monitors, and they are nice though...
Just curious, how do you get 496MB of RAM? I didn't think that configuration was possible.
goates