I'm using two 22" widescreens with Liquid at 1680 X 1050 without any problems. One monitor has component inputs too. The other, just a couple of weeks old has HDMI input instead of DVI port. I haven't tried this out yet. The main monitor is a nice Samsung. The new extra monitor was on sale at Best Buy for under $200. I can't get an exact color match to the Samsung, but its not bad considering the price. The timeline display is on the Samsung. The desktop/storyboard display is on the new cheap Hannspree. The full screen preview from the source viewers and the master viewers come up on the Samsung, which gives pretty accurate color. The Hannspree is good enough for seaching through the racks looking at the thumbnails and storyboarding. I can watch TV through the cable company's DVR while I'm online at my desk. The DVR has both component and HDMI output, so either monitor is usable for it.
The two work well with my HDV1 timeline (720P). I'm looking for a better camera someday than my JVC, but the consumer cams just don't have the ergonomics or real buttons and focus ring etc., and I can't afford a pro cam, so I'll stick with my present setup. There's plenty of vertical space for me right now.
If the finances weren't such an issue, I'd go with twin 24" widescreens, of the exact same make and model, but not a cheap off brand. I've had good luck with Sony and Samsung LCD monitors, and Toshiba LCD televisions. But if finances are an issue, prices have come down and the off brands give a pretty good picture for the price.
Hope this helps.