I did a lot of reading on this and I went with VGA. I have a macbook pro with a 32" Samsung LCD TV. The digital connections apparently can cause more hassle with resolutions and more cost with cables than it's worth. The VGA connection lets me set to the correct tv resolution (without additional res software) 1366x768 and it looks great...I'm picky about picture quality.
Great for everything from web browsing to watching movies. I use it for running Pro Tools. As for graphics work, it may not be up to snuff, but definitely good for extra space (tools, etc)