The Radeon 8500 offers what your looking for and the price just keeps getting better everyday, I have only played around with a second monitor (as I don't have a great 2nd one) but it worked great. and the video quality is excellant!!
Buy the 8500, I'm using it right now with 2x21" at 1280x1024 each. works great and makes life easier. Price wise, you can't buy a better vid card for the purposes of both gaming and dual monitor setup.