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Absolutely! In fact, I've written on article on how to set up a dual-screen editing system for Muvipix.com.
You can't have too much video editing real estate (but you can certainly have too little)!
Thanks Steve. I appreciate the quick response.
I'm familiar with the too little! So how big can the editing screen be, say on a 22 inch monitor?
Can moving the panels over to the second monitor be done using PE2 or do I need a more current version?
Yes, you certainly can undock the panels in version 2 and spread them over two monitors. And, yes, you can make the the monitor panel as large as you want -- but do note that your computer monitor has at least 4 times the resolution (or more) of a TV, so don't be surprised if blowing your monitor up to 22" just makes your video look fuzzy and pixelated. But you can do it if you want!
Per my Steve's Tips article, I much prefer to use my second monitor for my timeline, so I can work with several video and audio tracks at once.
See also http://www.adobeforums.com/webx?128@@.59b6bf48 concerning saving and loading custom workspace layouts, including dual monitor setups.