The DVI output on the Mini will certainly be able to output to those displays, however the higher the resolution, the more the 32MB of VRAM will hurt. 1920x1200 is a 9MB frame buffer. I assume that Mac OS X is double buffered at least - that's 18MB gone. Then another 9MB for the desktop image, ~5MB per window for open windows (if they are double buffered as well, then that's 10MB), etc.
Literally the 32MB of VRAM will let you have one half-screen window open on a 1920x1200 desktop in Mac OS X before you have to start using AGP texturing and hit main memory.
32MB VRAM on a 1024x768 display is fine however - that's only 9MB of memory for the double buffer and the desktop image. A full screen window is 3MB (6MB if double buffered)- you can have quite a few of them open before you get issues.
I expect the iBook and Mini updates will be moving to 64MB VRAM next week though. The iBook might be 1280x768, and will gain nicely from this, and it should make the Mini usable on a 1920x1200 display too.