You'll still need audio. DVI doesn't carry audio.
Video quality depends on the source material. I have a 42" Samsung that I connect my Macbook to with the Mini DVI to RCA cable adapter. I have to get off my butt and get a DVI to HDMI cable, I know.
I have an external 340GB hard drive that holds my iTunes library with all my music, TV and Movies. I usually download TV optimized MP4 files which pretty damn near HD broadcast quality. Definitely a huge improvement over watching SD broadcast on an HDTV. I hold off watching Battlestar Galactica and download a torrent to watch on my TV because it is better than watching it in SD on Space.
Because everything is in iTunes, it plays very nice with Front Row and the remote.
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