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First of all, if you only need one monitor, you definitely don't want an external video card (nor is it an option). Your primary video card is probably either integrated with your motherboard or a card plugged directly into the motherboard.
If you need to add an additional monitor, though, and you don't want to mess with opening up your box or if you are using a laptop, an external video card should make a great addition to your setup.
The good
External video cards are easy to setup - you run the driver CD, plug the cable into your computer's USB port and the other end in the monitor and you're in business. Scalability is also an advantage - you can add up to five additional monitors for a total of six monitors - pretty cool for a desktop setup or for your laptop.
This technology has been refined over the past couple of years and DisplayLink has finally released a chip that provides decent graphics with very little latency, one of the issues common with previous attempts with external video cards.
The bad
If you are a gamer, this is not an ideal solution for you. The graphics are pretty good, but won't keep up with the graphics you are accustomed to from your PCI-x video card. The resolutions max out at 1600X1200.
Also, these cards are a bit more expensive than anything but high-end graphics adapters - they are around $120-150 depending on the quality of the resolution you choose.
Conclusion
If you are looking to add an additional monitor (or two, or three, etc.) for business applications - spreadsheets, word processing, email, etc., this is a great option for you. Even if you want to just watch DVD's or YouTube, an external video card should do the trick. If you are looking for a graphics processor that can do some heavy lifting (like the MSI Radeon HD 3870), you should look elsewhere and, unfortunately, you don't really have a feasible external option.
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