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Paul,
This decision is going to be up to you. What I would do is only use a Video card that supports the TV out such as the ATI Radeon 9000. This is the video card that we recommend.
For the Dual Display to correctly work 100% in your Operating system, you must have Windows XP Professional. Windows XP Home can also do, I think what you are wanting to do. It will just strecth your display to the TV monitor.
I have never used one of these VGA converters, and really don't know if it would work correctly or not with Microstudio.
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Bryan, MTU
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