TV's often have circuits for smoothing SD content. If there is a option to turn it off, you might be able to use it, but big chance the TV will add a lot of lag. Some add 60ms! That is unplayable.
Other things to consider:
28 inch 16:10 screens are only made in TN flavour. This means no great viewing angles.
For 4:3 content and great angles the options are:
27 inch PVA panels, but these have a slower response time. For example an old Dell 2709 or 2707, a Samsung 275T or a Acer 2723.
26 inch (actually 25.5 inch) IPS panels. These are probably the most beautiful panels ever made, even to todays standards! These were found in LG W2600HP, Acer 2623, Hazro 26i, Viewsonic 2623, Nec 2690 among others.
Both 26 and 27 inch delivers close to 19 inch 4:3 CRT vertical space as well. These 2 options are no longer made, but can be found on classified sites. Don't be fooled by the second hand thing, these screens are above most screens available new today!
For just vertical use, the 20 inch 4:3 IPS screens like the HP LP2065 are awesome. The vertical image is bigger than on a 32 inch TV!
If you look at new monitors, the closest thing is the new 27 inch IPS panel with 2560x1440 resolution. It is a lot of pixels, and awesome in colour and angles, but it is only 22 inch 4:3, where the old 25.5 16:10 ones had a 23 inch 4:3 image, and the old 27 inches had a 24 inch 4:3 image. But these panels are in the 600-700$ range!
The only real good solution right now (currently available) is the Acer B273HLOymidh (be sure to match the name correctly, there are small name variations with totally different specs). This screens is cheap, it has a MVA panel (almost the speed of IPS, wide angles and with good blacks of PVA). It's a 27 inch 16:9 1920x1080 screen for 300$. And through the use of fullHD resolution and HDMI, this monitor is perfect for XBOX/PS3 content as well.