That monitor should work for you. Blu-ray videos are 1080p resolution (1920×1080), so like you said in order to harness the potential, you’ll want a monitor that is capable of 1080p. You’ll also want to make sure you connect by HDMI to have the system at it’s full potential. If you don’t know already, most recent LCDs/Plasmas have HDMI connectors so you can also use those as a monitor if you are wanting to watch movies. Again you’ll only see the full Blu-ray quality if you have a 1080p TV.