If you get an HDTV the standard Windows home screen will look much better since HDTV's run at a much higher resolution than Tube TV's...for instance my new 27" LCD has a native resolution of 1280x720 (or 1360x780 forced), which will get knocked down for analog and digital cable but focus back in while watching HD....smae goes with using it as the monitor, you run the comptuer to the new HDTV and the resolution will be what the Graphics card is set at (up to the native res)
Thats the predicament with HTPC, if you want t orun one you need to have a TV that can display a picture like a monitor or it's pretty much worthless but you can't effectively run and record high digital channels or HD-Channels through a cable converter that your cable company gives you. So it's real usage is for your office that gets the regular Analog signal
Try to convince your wife to get the monitor/TV I got, it was $770 w/ shipping fromthe Egg and I think both shipping and price dropped $5 for it's $760, not sure what your budget is like but I'm getting mine today and will let you know how it works
Make sure if you're looking at any HDTV that it has either DVI or HDMI inputs, even YPrPb but make sure of DVI if you are connected it from your computer...i'm pretty sure they sell DVI-HDMI cables