The 12" can't use an Apple ADC connection display straight from the box, you will need a $299 adaptor. I can't remember the name, but I'm surre someone can tell you where.)
It can use a VGA display natively.
It can use DVI with an adaptor.
In general brand wise, I would say to go for a 'Formac' display. From what I have seen they have excellent products... you won't go far wrong if you use them as a benchmark.
Peace,
Marc