It really depends on the monitor, some look better with DVI and Vice Versa. I know that my LCD looks much better using DVI, as using VGA It always has a green tinge, even if i compensate for the colour. You should try both connections and see what you like best.
Video is digital to begin with. First it has to run through the RAMDAC to be analog (VGA), then it has to be converted back to digital by the monitor. This will cause a loss of some data, so that's why DVI SHOULD be better for flat panels.
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The problem is the Bandwidth of the DVI connectors, which is based on the TDMS used. Single allows a max of 60hz usually @ 1600x1200, but sometimes up to 1920x1440 if a rare high end chip. Usually to push above 16x12@60hz you need dual TMDS on a dual capable cable.
Most gaming cards will usually max out the bandwidth of the DVI connector @ 16x12x60hz with their single TMDS. But look at this review and see how cheaper and slower parts quickly restrict your resolution.
The VGA connector can be better but requires more tweaking usually and alot more money and gear. For the average user the DVI will give you truer colour and better picture. However, it really depends on what you find works best with your setup, nothing is a sure thing for either.
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