Looks fine to me, I got a 19" widescreen lcd monitor the other day and it's plenty big for 360 games imo, as long as you're sitting close enough to it. Like that TV it's 5ms response time so you won't see any ghosting on screen. I'VE got the 360 hooked up to it with a official VGA cable and the picture quality is pretty damn amazing, perfect for my bedroom.
No, it has a poor resolution and and an extremely poor contrast ratio. If you are on a budget it would be best to save a little more and get a better HDTV. I game on a Samsung 46 inch 1080P LCD, but also have an LG 37 inch 1080P LCD, Toshiba 26 inch 1080P LCD for one of my PCs and a Panasonic 42 inch 720P Plasma. Last year I gave away a Toshiba 46 inch 720P Rear Projection HDTV. I also have many friends that own quality HD sets and the smallest one that one of my friends uses as a primary gaming HDTV is a Samsung 40 inch 720P LCD.
I'm not trying to be a jerk, I'm just really experienced with HD tech and you should save up and go for at least a 32 inch 1080P with a decent contrast ratio. Here is a good model by Sharp
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