theres no doubt that it will work Dan7u, but the real problem lies in the fact of it being able to do 480i or not. and You WILL NOT be able to do 1080i Sorry

I'm in the same boat with that.
480i is standard (if Im getting this wrong someone please correct me!) so if you pop up A game that doesnt support Any High def signal like 480p 720p then your screen will display either nothing or a really messed up image.
Luckily my Xerox has no problem doing 480i, So I can play any game on my Monitor without a problem. But only A small number of LCDs can do it so I'm not 100% sure that yours can. Try Googling it and see what you can find out, It'll take alot of looking probably but will help you reach your decision

And the Vdigi support forum was a good idea they'll probably be able to help you too
Wolf, the best way to discribe 480i vs 480p is color, The colors (at least to me) seem more vibrant Whites look whiter, Blacks look blacker. Also Since its in Progressive Scan (meaning instead of 1/2 of the image being displayed in a fraction of a second, and the other 1/2 in another fraction of a second, the Entire Image is displayed in a fraction of a second) it also looks a WHOLE LOT clearer, and since most Xbox and Gamecube games support it You can make full use of 480p.
Side note:
HDTVarcade.com is the best site to go for to see what games can do HDTV and what games cant. MOST PS2 games dont do 480p, but almost all Gamecube games do, as well as almost all Xbox games But since Xbox is a bit more of a powerful system it also has a few games that can do 720p and 1080i.
So if your doing this JUST for your PS2 it may not be such a good idea just because there are so few games that support it, but if you have an Xbox and Gamecube you'd like to try it out on its worthwhile
but remember these fine steps!
1)
Make sure Your monitor can do 480i!!
If not then it could be kind of a bad situation to be in, Since most games (ESPECIALLY ps2 games) dont support HD then You'll get messed up images and wont be able to play them on your Monitor.
2)
If you want to do 1080i make sure your monitor can go that high!
1080i Requires a Resolution of 1920x1080 if you want to go that route make sure your monitor supports that resolution! (almost every CRT Does though even if it doesnt show it, My 6 year old Compaq runs it fine)
3)
Use HDTVArcade.com To find out what games support HD!
It's a very helpful site to see if that game your looking at purchasing supports HDTV or not.
4)
And Finally If you need help dont be afraid to ask!
If you cant find an Answer here, Try Tech support forums! they are out there and can definatly help

(sorry dont know of any though) I dont want to see anyone spend 75 bucks and find out that they can't run 1080i on their monitor or that 480i isnt working so remember research is important!
Sometimes you wont be able to find the answer though, So you may be forced to take the "plunge" to see if you can run 480i on your monitor, Its something I had to do, I'm very happy and very lucky, But I cant guarontee everyone will have good endings like mine, It helps to have Multiple Monitors laying around also
Good luck! we're here for you!
Heres a good site to give a very simple rundown of how it works:
http://www.voom.com/newsletter/aug_resource2.shtml