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No you dont dvi - analogue converter. is fine. DVI is only used on TFT's really. And i still have not found a tft display thats as good as my crt display.
Some monitors already handle in excess of what most hdtv's can. 720 is 1280x720 so there really not that high most 17" cheap monitors will handle higher res's than HDTV's can unless you get a good HDTV that does 1080i properly not just upscales or downscales to it.