Need an opinion on monitor choice

Note: Please read at least the OP of my build thread here before reading on, since that thread clarifies some things.

So, I'm currently planning out my first custom build, and I need some monitor advice. I am of the opinion, as well as many people I know, that one of the components you should never skimp on in a build is the monitor, because that is what you will be looking at for the next few years. So you want one that looks as good as possible. However, I'm also on a bit of a budget. What I'd like to be able to pay for the whole rig would be something around $1300 dollars, and I've budgeted around $200 of that for the monitor. Now, the monitor I've been decided on for a while is the Asus VH242H. It's 23.6", 1080p native. Basically my ideal monitor. However, its TN. Now, if this rig was purely going to be used for gaming, I would have no issue with this, since TN has the best response time. But since this is mainly going to be used in a dorm, this is going to be my gaming, photo editing/graphic design, movie & video viewing, and general use monitor. So, I want something that has more than just good response time. I want one that can get fairly good response time, but not have f***-all color and contrast. So that would usually mean IPS. But IPS=$$$. However, I have found a couple around $200 that seem pretty good: the ASUS VS239H-P and the LG IPS231B-BN. I'm leaning towards the ASUS, but I'd like a second opinion. And if that TN panel would work just fine, thats even better.

Think I'll go with the U2312M, looks like best value for money. I have a second, more budget oriented possible spec, I'll get that ASUS TN for that one.