also keep in mind that getting a picasso or any other graphics card will only give VGA resolutions inside workbench only. Any application (read, any game, demo, software) using the native graphics chipset will switch the output to Amiga RGB output, taking you back to square one. If you're not interested in games/demos and stuff though, you'll be fine.
The Picasso IV has a scan doubler and flicker fixer built in. It shows games and demos on a VGA monitor perfectly well.