I never tried it, but that method should work.
Generally, a standard TV will have lower resolution than a monitor because there aren't as many pixels per square inch. The newer Flat panel/plasma/HDTVs will have good resolution though.
7600GT is an OK card. As always it depends on the purpose and your standards. If your surfin the net and doing some mid-level gaming, that should be a fine card. If you are a hard-core gamer and want the absolute best graphics/frame rates the 7600GT will not be something you're happy with.