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If you decide to replace your monitor and/or video card the good news is that prices have dropped and quality is up even in the last year or so. In addition, both monitor and video card can be used through several computer upgrades (CPU, drives & memory). It really does make sense to purchase the best monitor you can afford then use it for the next 5+ years. I've had good luck with Samsung LCD monitors (below).
The biggest problem with inexpensive monitors is you generally can't adjust them accurately. Poor quality monitors end up being a constant eye strain. If you purchase a computer "system" you can always decline the packaged monitor and purchase a quality monitor separately. I prefer LCD monitors over CRT monitors in terms of their apparent brightness (contrast), less eye strain, and footprint.
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Video cards have also dropped in price and made dramatic performance gains in recent years. Almost any AGP/PCI card with 32-128MB of onboard memory will serve your "non-gamer" needs. These cards are available for around $60.
See this page for more suggestions for building a high quality computer from scratch for less than $600 and loading it with free, open source software.
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