Yes it has audio in and out connections. Have a look here for a full review.
http://www.tftcentral.co.uk/reviews/benq_gw2750hm.htm
http://www.tftcentral.co.uk/reviews/benq_gw2750hm.htm
What would you say is bad about it for gaming?
The BenQ GW2750HM showed an average display input lag of only 6ms during this test, ranging up to 8ms maximum. This was very good and should not present any problems at all, even for fast gaming. The lag of this screen has been categorised as CLASS 1 as detailed above.
Yes straight to the headphone/Audio out port.
I use my monitor with my 360 and PS3 and it works perfect no juddering or stuttering at all.
You can always use one of those Xbox 360 Audio Adapter Cables I think they're discontinued now, but still available. It's a dongle with stereo phono out and toslink intended for the previous version, but works fine apart from being grey.
Why would that have to go via the PC? When I use that output I have a phono to 2.5mm cable which is plugged into an amp and speakers. I would have thought the monitor will only be line out level you'll still need an amp or active speakers.

Cheers mate - So that should be the monitor to go for in my price range then? I'm happy to go for the 27" because I sit quite close to my monitor and I think 32" would be to big.
So it'd be a case of literally connecting the monitor to my Xbox 360 via HDMI and then just plugging 3.5mm speakers into the audio jack and I'll have no issues at all getting audio?
Yes mate pair of speakers into the monitor audio out/Headphone socket the same way I use mine. Works perfect.

