Well, based on some recommendations here on the forums, I purchased a Toshiba 27" TV tonight from Best Buy. It was $249.99 but I believe it was worth every penny.
Now, I'm by far no expert on TV's (or arcades) but compared to "cheap" 27" TV's, this TV looks EXCELLENT even with the S-VIDEO connection. I'll still probably purchase the ATI HDTV adapter, but I'm pretty damned impressed with this TV.
One nice feature is that the TV turns itself back on when the power goes out. That means you can simply unplug and replug the TV without having to use a remote or a power button. The TV also remembers the last input (eg. S-VIDEO, Color Stream, etc)
Highly recommended!!