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From my experience, the S-video out of a new GeForce FX based card is worlds apart from the many GeForce 2 cards I have tried. Is it necessary to buy one? No, but the output is MUCH better.
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Are all of the FX cards that much better? I checked and there's quite a price difference between the 5200's and the newer ones.
Thank you for the information, I've never really kept up with all the video cards before and it's quite confusing (especially since the reviews all talk about gameplay and all I care about is TV quality).