1. is it worth upgrading the video card right away? Or actually any immediate upgrades suggested - got about a 1000.00 max budget.
If I were buying a system today, I'd get a $200 GTX 1060 and spend about $500-600 on the rest of the computer system (not counting monitor), such as from superbiiz.com.
2. like the 42 inch tv option as a monitor - what minimums on specs needed for good graphics, ie. LED? refresh rates .. etc..
My suggestion would be (regardless of what you get) one with 5 ms or less response time. I don't know if TV's are good gaming monitors or not -- never used one for that.
3. Headphones - mic - any standard basic setups recommended - ?
I like the KOSS CS-100. Super cheap (about $15), but I like them, think they sound good, and the mic is very good.