Oops, forgot this, sorry:http://www.newegg.ca/Product/Product.aspx?Item=N82E16814102855&cm_re=hd_4670-_-14-102-855-_-Product
You have a great monitor there and no, you can't run the latest games on a higher quality, only on medium quality (lower resolution) in that budget.
The alternative is to wait and use the onboard video until you get the money for a better video card like a HD 5770. Or get only 2G of RAM (you can add later) and a HD 5770 but that's over your budget:http://www.newegg.ca/Product/Product.aspx?Item=N82E16814121363http://www.newegg.ca/Product/Product.aspx?Item=N82E16820145246
Anyway I think you shouldn't buy a cheaper smaller monitor.