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At the moment, my Wii and PS2 are hooked up to my old 20" TV via a non-progressive-scan component connection. Prior to this, they were connected via S-Video to both my TV and my PC (they traded places at least once in that regard). Soon, though, this will be my setup for console gaming:

24" Sceptre 1920x1200 max resolution widescreen monitor ($330)
Creative Labs 2-speaker system w/subwoofer (received as a gift)
Nintendo Wii ($250)
PlayStation 2 ($120)
Component 3-in-1 cable used for both PS2 and Wii, with component-to-VGA adapter ($15; gotta love quality wholesalers)
Gaming-quality PC (don't even want to speculate how much this rig cost me, though it doesn't impact my console gaming experience much...)



Sky Render - Sanity is for the weak.