hey, it is totally possible as you probably know... I used my pc with a friend's high end TV, and it was awesome! It all depends on the quality of the tv. After all game consoles run on tv's so your pc can too!
I have been impressed with the picture quality when using a large screen Plasma or LCD TV as a monitor it is especially effective when used for gamming. One possible problem though not all TV’s can sync onto all graphics cards which results in a distorted picture. It is a matter of luck if your graphics card will work with your TV although most will.
I just got an Insignia 46" inch LCD HDTV, 120hZ from best by to try as a gaming monitor on my PC (using a BFG 9800GT Video card). The graphics were GREAT but there was enough mouse lag in COD Black OPS that I could not aim fast enough to stay alive very long (even after adjusting the mouse thru Vista and in the game)...LOL!
I called and spoke to one of the guys at Best Buy and he said he would not recommend any larger than 40" and that should take care of the mouse lag...
well, yes. although the mouse lag is actually caused by the response time of the tv instead of the size. I just bought a 20" with a 5ms response time, and I don't feel any lag. I believe that lag is caused by a response time of 16ms+ but you should check online. Basically, if you are looking for a large screen plus low response time, It's gonna cost you. By the way, do not worry about the refresh rate unless you are looking to go for 3d gaming. if you're going 3d, then go for a screen w/ 120hz refresh rate.