Well, right now I am about 2 feet away from my 22" monitor. I could probably move the 32" TV another 1.5 feet back and mount it on the wall, that would be pretty cool.
And actually, I was looking for a TV not a monitor.
Depends on what resolution you want, you can do some nice gaming on 8800GT on 720p but it starts to get laggy at 1080p and gaming on 2560 x 1600 is only capiable on less demanding games like battlefield and many counter strike.