I connected a VCR to my pc via a LINE-in on my videocard and it was nice, but in the end it's not really pratical. If you want to watch tv and do something else (like surfing the web) you allways have to move the tv window to see what's under it.
I ended up with a dual monitor setup : 21" widescreen + 17".
But if you want to play a game and watch Tv, it's really CPU intensive, so having a separate TV in less painful. Since yo u already have it, you should keep it.
placing my sub in the corner did an improvement in my setup, so I will suggest that you at least try it.
BTW , it's really a nice setup for a bedroom. The only thing is that you could try to hide the cables a bit
