If the monitor is 4 ms response time then it should be fine (they don't make those, but 2ms and 5ms are the closest and those are the same, 5ms = 2ms gray to gray). As for the resolution, doesn't matter so much, I mean come on, we played snes games on a screen with 600x400 resolutions. It really is all about response time and pixel pitch, but in all honestly since you are new to gaming on pc I doubt at all it would matter.
As far as DPI goes, let me elaborate/explain what Virago missed. DPI has to do with the quality of the tracking of the mouse. So, lets treat the sensor as a tiny little camera taking a microscopic picture of your mousepad/desk. Optical mice will take a very poor quality picture, you might see large specs, but not very good detail. A Laser mouse nowadays has 10x the detail of an optical mouse. There are different qualities of cameras used, lasers used, and you can have one DPI better then the other, but it doesn't matter all that much unless you are used to it. By that, I mean you have a 400 dpi most likely optical mouse, it will work great for you because you have no idea what a "good" mouse is. So, when you get that new one for christmas you will think to yourself "how did I play with that old POS mouse before".
Apart from that, and to confuse the situation, there are three different settings what have to do with the mouse movement on the screen, Game sensitivity, DPI, and mouse Sensitivity. Sensitivity being controlled in the game/mouse driver, but essentially the higher it is the lower the distance you need to move your hand in order for it to move on the screen. So, you have the sensitivity set to high and you barely move your hand at all, the mouse moves all the way to the edge of the screen. All the way on low, you have to pick the mouse up several times in order to move the mouse to the edge of the screen. THIS is where DPI comes in. You should set the sensitivity as low as tollerable in the mouse driver. Usually a 1 through 7 or so scale, 1 being the lowest. So set that to low, then turn the DPI up and try to move the mouse cursor left, right, up, and down, all the way to the edges of the screen without having to pick you hand up, or move the mouse too little.
The "best" mouse settings will allow you to move all the way to the edges of the monitor without having to pick up your wrist or torque your hand in an uncomfortable way, while still allowing for precise movement when you are trying to make very small movements (say, aiming at an arm vs. a neck/head in a shooter). The only way to do so is to get a mouse with a very high DPI which will allow you to have the highest detail image from the camera/laser image used by the mouse to track movement, which correlates to very smooth movement.
Also, when you see something like "enable cursor/mouse smoothing", that is a software filter that will try to map out what the software thinks your mouse is moving towards, and will result in lag and in some cases very inaccurate movement and should always be off.
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