Screen Resolution IS important!
In the past week I have seen quite a few sites posted to the Showcase & in the reviews section that are just plain huge. While bigger monitors are becoming the norm, I don't believe that you should limit your viewers with smaller monitors or those that choose not to view in a full size window.
You might want to check out this article by Jakob Nielsen - http://www.useit.com/alertbox/screen_resolution.html
Enjoy!
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