1) I have found the hardware and software to be very well realised, and very stable in use. Not had any problems so far, anyway.
2) I don't know if they are still readily available, but Eyetech make/made a variety of video switchers along these lines. I don't know if any of their models feature automatic switching of screenmodes, though. Would be very cool if they did, but those that were on sale when I bought my Mediator all required button pushin. I think some up to date research might be called for.
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