This will come down to a matter of taste, so there is no "right" answer. I'll throw my opinion in for perspective, but you need to see this in person to make a decision, imo.
My friend has a 50" 1080p LCD display that he uses. He puts this about 3-4 feet from where he sits, for this huge panoramic effect. I hate it. It's too big, too close, too pixelated, and washed out color-wise compared to my dell 30" monitors. You can put the monitor farther back, but you are still running a 1920x1080, which will be noticeable compared to a higher resolution alternative.
You say you're not sure you can run 1080p on your video card? If so, that might change things, but honestly, I'd upgrade that and whatever else you need in your computer if it's that marginal before the monitor upgrade. Having a 60" slide-show would really take me out of the game, personally.
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