you can watch 1080 resolution movies, theyll just be scaled down to the resolution of your monitor. and before you say "but youre not gonna be able to watch that DVD in 1080p!!" DVDs dont have resolutions of 1920x1080, they are much lower, and upscaled to the res of your screen.
and i dont want to bring up the tn, but tn panels do suck, i have one, and its pretyt terrible... very cheap, but not very good