I'd definately stay away from that plasma. As all have said, resolution is pretty poor.
It's a fair amount of money to invest into something which *may* end up being a throwaway in a year or two.
Unfortunately, I'm terribly biassed, but if you (they) can stretch, I'd go for a Sony Bravia LCD. You can get the non-wega 26 incher (KDL-S26A12U) for just over £800 and it will truly blow away the plasma in terms of resolution (it's 1366x768, HD ready) and colour fidelity. Also has VGA input, 2x RGB scarts and HDMI