Your best bet with LCDs right now is finding an LCD that handles variable refresh rates and using Powerstrip + GroovyMAME with HLSL enabled to run all your games at their native refresh rate.
It's the closest you're going to get with LCDs. It's still less than ideal, though, because they just don't make 4:3 LCDs with 1ms response time, so it's a matter of picking your poison:
With Powerstrip and GroovyMAME, though, at least the refresh rate issue is solved. Games _will_ run smoothly. HLSL doesn't look exactly like a real CRT, but it's at the point where I'd say it's close enough.
The major remaining hurdle is ghosting/response time issues with LCDs.