i really need a new graphics card sence im still running a nvidi gefore 7600 gs with 512 mbs of ram. ide say my needs would probably be to be future proof for the next few years and my budget would have to be upwards of $150-$200 and i dont care if its an ati or a nvidia grapgics card as of right now. its going to take me a few months to get the money i need but ill get it one way or another by say december. and im looking at a new monitor to go with this setup as well so pleas try and keep the combos around and under $500usd total please cuase thats how much i was planning on spending on a new 26' lcd tv
I wouldn't put anything expensive into it, if that's the case.
Get the monitor now, and either put in a cheap but decent GPU in, or skip on it entirely.
It won't be real powerful to get a lesser GPU, but the concept behind this is to put the money you save towards that new system. If you go and put a powerful GPU in it now, that's less money towards your build (especially if you need a new PSU for it, which it sounds like you will), and more time waiting, so by time you do get the new build, the card you get now will likely be nearing it's end (not the end of usability, but the end of being really good and worth putting into a system that's new a year from now), and the PSU won't be as good as one you can get if you wait.
I'd say either skip on the new GPU entirely, or get one that's cheap and will work with your current PSU (something like a GeForce 8800GT/9800GT may be the limits I'd push with that PSU).
As for the monitor, if that'll be carried over, splurge now. I wouldn't go any lower than 1920x1200. Physical size isn't as important as quality.
There's nothing "wrong" with it, per se. You told him he couldn't get a 26" monitor for the kind of money he was spending when he never stated he wanted a 26" monitor. What he stated was that he was originally going to get a 26" television for the money, but instead wanted to put the same amount of money towards the monitor, but never was it said that it necessarily had to be a 26" monitor, so your comment of "you'll have to stretch your budget to get what you want" seemed out of place, because he never stated he wanted that. It seemed to me like you read that as though he wanted a 26" monitor, hence my reply of "there's a difference between a 26" LCD television and a 26" LCD monitor".
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