PAL?? you can't output to a TV from a tuner, But most GFX cards will have video out (TV-Out). If you want to play PS2 on ur LCD, the LCD isn't a limiting hardware, PAL will work with nearly all cards. You just have to get teh right software to run it.
THe issue here is LAG. because most encoders will take time. So far I just discovered ChrisTV and it works perfectly with my VIVO X1900xtx and plays the games with NO lag. THE ONLY problem is the Color is not very good, but i guess i can't expect too much with Composite interface. BUT it is VERY playable. My 30" probably has something to do with the graphics looking shabby.