if your TV has a digital input and your graphics card does too, you're in business. The signal will come out looking clean and crisp, in fact, mine looks 10X better than my 18inch LCD. Movies encoded with divx look really sweet on TV but come out like a bag of monkey ballz on my LCD... But text is kind of small on the TV, because it has a limited resolution of 1024X768
.. LCD goes up to 1280X1024..
If you do go the TV route, make sure to adjust your flicker rate, and if you have a digital vibrance setting, I found it helps enhance the coloring of the desktop.. which improves readability quite a bit.
If you can afford a plasma TV, they are simply LCD TVs.. those do fine with text, graphics, movies, etc...
BUt for everyday usage, I'd stick with a conventional monitor, either LCD, or CRT.
let us know how you set it up