Hi and Welcome to Just Answer, Ok, let's take a look at this;
What you need to do is, unplug the e-machine monitor, and plug the new one in. It should find it.
You may need to install the disk that came with it, if no disk, you will need to go to the website that the monitor is from and get the drivers needed to install it to work on your computer
You will need to go to safemode to make the changes to the display and monitor. and add the software.
Go to Start-> shut down-> Reboot
Reboot your computer, F8 safe mode
Start->Control Panel->System-> System->Hardware->Device Manager->Monitor.
If there is a older Monitor there
Run the update driver for the monitor device, find your monitor that you are trying to add.
It should now work
If you need more help Let me know
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Sorry that was my bad, for some reason I had Inspiron in my head.
I don't think you can use the laptop as a monitor from your e-machine. You can do the reverse to send the signal to the tv, or another monitor. But since you are using the laptop when the power is on, I don't believe that a signal will be received. Now with that said you can use a remote connection to remote into the e machine and use it directly from your laptop.
To install Remote Desktop Connection 32-bit computers
On the computer running Windows 95, Windows 98, Windows NT 4.0 or Windows 2000, insert the Windows XP Professional compact disc into your CD-ROM drive.
When the Welcome page appears, click Perform additional tasks, and then click Set up Remote Desktop Connection.
Follow the directions that appear on your screen.
To create a new connection
Open Remote Desktop Connection.
In Computer, type a computer name or IP address. The computer can be a terminal server or it can be a computer running Windows Professional or Server that has Remote Desktop enabled and for which you have Remote Desktop permissions.
The Log On To Windows dialog box appears.
In the Log On To Windows dialog box, type your user name, password, and domain if required, and then click OK.