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A proper TV gives a much nicer picture.

That's a thought, but I don't watch TV. Still, it would be good for Wii and watching DVDs, but I don't really have a place for a TV; my house is in a perpetual state of renovation...

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Will it drive the LCD at 1920x1200 with a decent frame rate?

I have a similarly 6 year old GeForce 2 GTS (no longer supported by Detonator drivers) 64 meg 15pin video card. It drives 1600x1200 at 85Hz for my CRT just fine. Might do 1920x1200 at 60Hz. When you say "frame rate", do you mean "refresh rate"? Regardless, I plan to build a new powerful computer very soon (since Portal finally came out, I will finally get the Orange Box and play it and all the Half Life 2's). I won't skimp on a video card; that machine needs to last another 6 years (at least).

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Why does the Pioneer DVDR drive hurt it?

I suspect the quality of the DVD drive may effect picture quality. More likely, however, the quality of the DVD software and my computers display hardware/drivers. I recently watched Lord of the Rings (again) and tried to use VLC Media Player. It must use some kind of burst buffering because the motion was very jerky, corresponding with the slowly flashing DVD drive light. Using my old copy of WinDVD 3, the drive reads occurred more quickly causing video to be more smooth. But still, action looked blurry. Also of note, I noticed ghosting of light objects in dark scenes (ie: Mines of Moriea); maybe the CRT's fault?
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FireFox31
110gig MKIIa (30+80), Eutronix lights, 32 meg stacked RAM, Filener orange gel lens, Greenlights Lit Buttons green set