Hey bro,
I exactly know what you are talking about. Don't listen to the guys above me.
I bought an AOC 2216Vw. - It was the cheapest I can find :-D.
Here is my monitor, http://www.aocmonitor-anz.com/lcd_monitor/2216vw.php I don't know if that kind of monitor is available to you guys. ( If you live in USA ) but its available for Australia and New Zealand.
Look, if you are buying a monitor, just make sure its HDCP. Because you can't play HD on it unless its a HDCP. So check the specs very carefully before buying one.
LCD screen usually don't have a HDMI input, unless you buy those $500-$600 LCD monitors. That's way out of your budget!!.
So the cable that you would be using is a DVI to HDMI cable. The DVI goes in to the LCD, and the HDMI cable goes in to Ps3.
But DVI cables does NOT carry SOUNDS. So if you hook up your Ps3 with the LCD, and use a DVI cable. You would see the picture, but you would NOT hear any sounds.
So, to get sounds, buy a 2.1 speaker. Here is the speaker that I bought, http://www.trademe.co.nz/Computers/Peripherals/Speakers/21-2-speakers-sub/auction-173398977.htm AWESOME SOUNDS!!!
If you already have a 2.1 speaker. You would need your A/V cables, the white, red and yellow cables that came with your Ps3. ( but you wouldn't need the yellow because yellow carries video ).You would need a Y- Audio cable. http://images.google.com/imgres?imgurl=http://www.consumer.philips.com/catalog/SW/SWA2037_17_webImage370.jpg&imgrefurl=http://www.consumer.philips.com/consumer/en/us/consumer/cc/_productid_SWA2037_17_US_CONSUMER/Audio-adapter%2BSWA2037-17&h=275&w=370&sz=6&hl=en&start=3&usg=__CvfVzKQLP-IoJ4WVkK75IvtVd0M=&tbnid=1su5gfDF7MRySM:&tbnh=91&tbnw=122&prev=/images%3Fq%3DY%2Baudio%2Badapter%26gbv%3D2%26hl%3Den%26sa%3DG
And a female to female coupler. http://images.google.com/imgres?imgurl=http://cachepe.samedaymusic.com/media/quality,85/brand,sameday/HOSGRA101-0a522b1cac8830b221d75b0da6e88373.jpg&imgrefurl=http://www.samedaymusic.com/product--HOSGRA101&h=300&w=273&sz=13&hl=en&start=8&usg=__bir2Mjy3MNmGyl01DT58QiBd6q4=&tbnid=F3oK-Ic4v9MkaM:&tbnh=116&tbnw=106&prev=/images%3Fq%3Dfemale%2Bto%2Bfemale%2Bcoupler%26gbv%3D2%26hl%3Den%26sa%3DG
Once, its all done, you would just need to hook it all up!.
So the things you will need are: DVI to HDMI cable, Y-Audio cable and a Female to female coupler.
Ask this guy in this website. He could help you a LOT!
Just ask him in the comment box.
http://www.thecareergamer.com/?p=205#comment-751
BEST ANSWER PLEASE. I PUT LIKE more than 1 HOUR TO RESEARCH THIS. :-)