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I personally use a secondary monitor, where the HD video is always full screen and 1:1 size. Worth every penny out of the $280 I paid.
Yes, 1:1 resolution. Any PC monitor that can do 1920x1200 is perfect for this job. So you basically have a base monitor that you do the editing, and a secondary monitor where you display full screen, at full size. I usually use "preview (full)" when I edit on the secondary monitor. My camera is an HDV one, so when its video is displayed, it's 1920x1080.