both lotro and AoC would run better on the 22", most older mmorpgs will run fine on the bigger screens with the 8800gtx. Im pretty sure I ran WoW at 2048x1536 on a single 8800gtx when I was playing it.
Its worth noting that you will get a better image quality out of a 20" panel than 22" or 24" from the same range, due to smaller pixels \ higher pixel density. Smaller pixels reduces the need for AA.
Some people suggest sitting further away to blur away the effects of the larger pixels which of course reduces the effective screen size as well... By the same token why bother paying out for a bigger monitor when you can just sit closer to the smaller monitor to get the same effect
I set up a workarea for good ergonomics and comfort, and get my original image looking as good as possible.
Personally I prefer to get the native image as beautifull as possible and set up my seating and desk area for good ergonomics...
My 19" CRT started to go, So I got a 24" , has everything, 20,000:1 contrast ratio. I get it today. Samsung T240, you tube has a video review of it. looks amazing. An acceptable replacement for a CRT. 24" can do 1080 better then a 22 if you do get blu-rays.
Graphic intensive action games I purchase for my 360. : ) Strategy and RPG are typically my computer
With an 8800GTX this "budget computer" would have more GPU power than the 360. Paired with a 24" LCD, and cheaper games, you may want to rethink that a bit. I can tell ya COD4 at 1920x1200 4xaa/16xaf and max details is might nice looking. If your buds are all on live, that's different.