What i've got (because I don't ever watch TV) is a Samsung 226BW, its a 22.6 inch (i guess) computer monitor, and you can connect your PS3 via an HDMI-DVI cable. It's not absolutely ideal because like I said you can't watch TV on it, it doesn't do 1080i and it is slightly wrong for 720p/1080p because the aspect ratio is taller than an HDTV, which means things are stretched vertically slightly, but its barely noticable and 10000000 times better than SDTV.
At the time I bought it, I needed a new screen to replace my 6 year old 15" apple studio display and this seemed to be the best for the price/size bracket. It was £220, but I got it for £190 minus VAT, I think, those are approximations.
So basically I got a very nice computer monitor and HD-capable if slightly vertically stretched PS3 screen for less than £200.
Oh and when it changes resolution up to 1080p it comes up with a warning which you have to cancel by pressing a button, but given it's size I sit very close (i.e. at my desk) to it. That might sound stupid but it does mean I don't have to think about where to mount a steering wheel, because it just goes on my desk... Perfect! I just wish my chair was more comfortable.
There might be a 26" version of the same screen, but any computer monitor with its own power cable and DVI will work I guess. I know it doesn't really answer your question, it's just a suggestion.
Here's my setup: