What would you do in my situation?

I have a 19 inch monitor (perfect square) from like 2007 with no HD. I use that for PC gaming. I also have a 26 inch HD TV I use for console gaming. It's from 2007 as well but it's big bulky, LCD, and has a small (but noticeable scratch on the screen).

I want to replace them both. Which do I replace first?

A - I replace my old monitor with a 20 inch HD monitor. And keep my HD TV as is.

B - I buy a 40 HD TV (more expensive) and use my old TV as my computer

Why are you limited to just those two options?

@drekula2: Which do you use more on a daily basis? If you mainly game on your PC then you should probably go for a new monitor and a new TV if it's the opposite. Then there is ofcourse the option to buy that new TV and hookup your PC to it, if your not picky about latency and the fact that KB/M may not bet as intuitive and efficient in a living room setting depending on your furniture arrangements and such. Personally, I'd go with the TV first and hookup my PC to it and use a controller, since I don't play alot of MP games that require precision and fast responses.

1) I don't know which one you use the most so I can't really answer that

2) I don't know how big is that scratch on your TV and does it really disturb watching stuff on it

3) Why don't you do something different, buy yourself some good 23' Samsung/LG Full HD LED for 200$ and with that a 400$ 27'-29' TV from the same brands.

Have you looked at the online prices of HDTV's? You can get a 40" 1080p HDTV for $279 or a 32" 1080p LCD for $199 at Newegg. Or just wait for the holiday sales if you want a really good deal. You should be able to get a 42" HDTV for $200 or less on Black Friday...

I have a 21 inch HD monitor! It was about £80! SAMSUNG! I suggest you try and find a similar deal and just stick with your current TV for your consoles..... but in the end pick which one you would need or use more often and try to invest in that!

Also: Out of pure randomness, what are your specs?

Plenty of good deals around on monitors and 32" TVs these days