Guys I think I'll go with the XBox 360 + monitor/TV plan.
Seems to me that i get more VFM and also more future proof hardware.
@redlofredlof Dude I want to keep the PC and Tv separate thus no use selling I the old CRT.
@Not all games but some at least which I like.I can live with not being able to play some games.
@Ishu Gupta Good Idea thanks but I would have to use separate speakers.Don't you think its better to use the inbuilt speakers in the TV.
Thanks everyone for your inputs