I used to be a Matrox fan, but as much as I hate to say it, they just aren't competitive these days.
Nvidia makes nice cards (better performance than Matrox), but they also do not compare favorably to the current offerings from ATI in terms of image quality, speed (at the top of the line) and value for the dollar, in my opinion.
If you want great 2D and great (but not fastest possible) 3D, go for something like a Radeon 9500 128MB (it is based on the newer technology, similar to 9700 pro - in fact, the technology is so close, that early versions could be hacked to operate as a 9700 Pro, which is a $250 video card). You should be able to find one for in the $105 shipped range refurbed at Newegg if you check back in the mid afternoon a few days in a row. If you don't want a refurb, pay the extra $25-30 and get a new one (Newegg has the Sapphire version of this card for $139 shipped - if you want to have some possibility of hacking it, get the $141 red-PCB Sapphire version on a PCB with the same layout as the 9700 - it may or may not work as a 9700, but $2 isn't much extra to pay to keep open the possibility if you ever decide to try to hack it).
Try to get one manufactured by ATI or Sapphire, as I have read in reviews that they have the best image quality. With that card, you could also play a 3D game and enjoy it from time to time if you wanted to without the game play being painfully slow, even though it probably isn't the bleeding edge card that the hard core gamers will buy.
If you want something a bit faster but still reasonably priced, get a 9500 Pro (it has more pipelines enabled than the 9500). In fact, it could fairly be said that the 9500 Pro is a lower-clocked version of the 9700 Pro, only with 128-bit memory, instead of 256-bit (uses the same GPU chip, same number of pipelines, etc). The 9500 Pro 128MB card is a good value right now, but if you don't need speed, the 9500 will do everything it will do, just a bit slower. As a bonus, the 9500 and 9500 Pro are DirectX 9 compatible (not worth anything now, but might be at some point in the future). The 9500 Pro is getting VERY hard to find. The 9600 pro is a slightly more expensive, slightly lower-performing substitute for the 9500 Pro that ATI started making instead of the 9500 pro to save on production costs (which is actually based on a cooler-running, higher clocked, but more crippled core, giving performance just slightly less than a 9500 pro, but still very good).
I know Mackerdack is not a gamer, but if Cron is, and you want something close to top of the line, I have also seen Radeon 9700s (non-pro - just like pro only clocked a little slower, still has 256-bit memory, etc.) for as little as $160 refurbed or $200 new (new for $200 was Powercolor brand). If you do play some games, and really like performance, but don't have an unlimited budget, the 9700 non-pro is probably the way to go in terms of absolute bang for the buck for a gamer. If you are adventurous, you can probably flash the bios (voids warranty) and overclock it (not guaranteed) to 9700 pro levels, getting you to within about 10% of the performance of a 9800 Pro, which costs about twice as much.
Here is a link to an old but good article at Tom's Hardware describing what the current ATI offerings are, relative to each other, with the exception of the 9800 pro (which you probably wouldn't be interested in anyway, unless you want to spend almost $400 for a video card), and the 9600/9600 Pro, described above.
http://www17.tomshardware.com/graphic/20021202/