Yes, you will be happy with the external capture device such as HVR-1950. You can move this from computer to computer if desired.
As far as a monitor is concerned, I use a 19" on my XP computer and a 22" on my i7 computer. Both Dell refurbished. Working well.
Here are the specs on the 19" -
Dell UltraSharp 1908FP - LCD Display - TFT - 19" - With Height Adjustable Stand
Device Type: LCD display / TFT active matrix
Color: Black
Built-in Devices: USB hub
Dimensions (WxDxH): 16.1 in x 7.2 in x 14.3 in
Weight: 12.6 lbs
Diagonal Size: 19"
Viewable Size: 19"
Dot Pitch / Pixel Pitch: 0.294 mm
Max Resolution: 1280 x 1024 / 75 Hz
Display Positions Adjustments: Height, pivot (rotation), swivel, tilt
Color Support: 24-bit (16.7 million colors)
Response Time: 5 ms
Image Brightness: 300 cd/m2
Image Contrast Ratio: 800:1
Digital Video Standard: Digital Visual Interface (DVI)
Signal Input: DVI-D, VGA
Vista Certification: Certified for Windows Vista
Compliant Standards: TCO '03, TCO '99
Power: AC 120/230 V ( 50/60 Hz )
Power Consumption Operational: 75 Watt
Environmental Standards: EPA Energy Star , EPEAT Silver
The most important are the resolution and the refresh rate not less than 75 Hz.
More info on refresh rates - http://www.quickonlinetips.com/archives/2005/03/change-refresh-rate-of-your-monitor-avoid-flickers-and-headaches/
AND
http://support.microsoft.com/kb/311403