Although my IIci is currently out of commission (needs re-capped; alternately I'd be willing to buy a new board so long as the caps are OK), I had used it in many capacities since I acquired it in April 2005.
Initially, it was a server for a small group of compact Macs. I then began using it for programs requiring color, including an old version of Photoshop. (I had set up a IIsi to serve the compacts instead). I was going to set it up to run MacroMind Director and HyperCard 2.1 (for development) last summer, but the power supply conked out (or so I thought). I replaced it with no luck and concluded the problem is caps.
Of all the vintage Macs, it's one of the most versatile due to its integrated video, ability to run System 6, and decent amount of processing muscle. Make sure you have a cache card installed!
As far as video--are you using an external video card or running off the integrated (vampire) video; if using a card, which one? The original Toby card (also called the Mac II Video Card) can't drive an LC monitor, so chances are you have something else. (I'm thinking of maybe the Hi-Res card, which does 512 x 384 and 640 x 480).
Look for the Apple Display Card 24AC (rare, better) or Apple 8•24 (more common, but will do what you need it to) for your 16" monitor.
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