1080p TV vs. Computer Monitor
What is an acceptable image quality is really in the eyes of the beholder and really depends on exactly what it is you want to use your computer for. However, a decent computer monitor will generally have a higher resolution but for regular computer usage such as internet, email, games and playing DVD's, the 32" 1080P TV should be just fine. Just to give you an idea, a 1080p HD TV is equivalent to about 1920x1080 resolution which is typical of many low to mid range 27" monitor. This is a little low for a 32" screen and may be a little fuzzy for detailed computer work. Higher end 30 inch monitors can have resolutions of 2560 x 1600.
Depending on the age of your computer and the type of video card you currently have, I would probably recommend double checking its resolution capabilities to make sure if can even drive the TV. You might want to upgrade the video card to one that has an HDMI output. This will give you the added benefit of video and audio in the same cable (If you are planning on running the computer sound through the TV's audio system). If you go with the VGA cable and separate sound cables you can often run into ground loop problems causing excessive audio hum.
If your computer happens to be a laptop, you can do what I did when I was curious about the very same thing. Take your laptop(with a VGA Cable) down to your local TV store and ask the salesman to plug your computer into one of the sets on display. Run a few of the applications that you normally work on and see for yourself.