1. Which KVM switch would you recommend?
That depends on a couple of factors... PS/2 vs. USB, VGA vs. DVI, single screen vs. dual screen, etc...
2. Is there any mouse/keyboard lag?
Not that I've ever noticed -- but there is a bit of a catch: Many of the KVM's have hotkeys that can't be disabled, which *can* interfere with certain programs/games. Depending on the make/model pressing Scroll Lock twice may have special meaning (e.g. switch to the next monitor, or in case of >2 heads you may type additional info such as the number of the PC you wish to connect to, or Left/Right cursors to walk through the list)
ScrollLock may be innocent since it's rarely used twice in a row, but others use CTRL. Hitting CTRL twice is pretty common if your playing games with a keyboard, so those could cause issues... (Especially since you typically can't disable the shortcuts: the KVM simply intercepts them in its own hardware)
At my work computer I love being able to switch by using CTRL-CTRL (convenient place on the keyboard), but at home it would be completely unworkable because it would break every other game.
3. Do they reduce the monitor signal to crap?
There is a definite degradation of the VGA signal in the ones I've used over the years (several different brands/models. E.g. a slightly ghosted double-vision slightly to the right of images, and/or a visibly moving refresh bar slowly going from the top to the bottom of the screen... It's still usable, but seeing the KVM and non-KVM version side-by-side it's not difficult to pick which is which.
However: A big reason for that is that VGA cables normally aren't recommend to exceed 6 feet, and in a typical KVM setup you end up with twelve feet in cables plus the box itself. You
may get a sharper image by intentionally getting some short(er) VGA cables instead of the standard 6 footers.
If you have DVI, then there are DVI-based KVM's. Unfortunately those are much more expensive, and last time I was looking around for one and read a bunch of reviews, they all seem to be crap on top of that. (e.g. intermittend problems passing through a signal requiring a powercycle, etc.). In theory the DVI ones would be much nicer since you don't have the crappy analog signal getting deformed through the whole setup, but unfortunately it seems that DVI KVM's are still in their infancy.
4. Any specific feature/spec I should look for?
- Make sure it has the ports you need (USB vs. PS/2)
- Make sure that any built-in hotkeys it supports won't interfere with your normal work (or gaming). You can probably find this out by downloading the user manual from the manufacturer's website, and looking up what they are.
- Some of the KVM's come with attached cables, which will likely be cheaper, but also means that you can't change them for shorter ones (which would degrade the VGA signal less)
5. Anything I should avoid?
See my other points above and below...
6. How will it all plug into and affect an existing dual monitor setup?
None of the KVM's I've used have been dual monitor aware. If you are intending to switch two screens, you either need to:
1) Get a KVM that specifically supports dual screen
2) Use two single-screen KVM's (which would be inconvenient, especially since you wouldn't be able to use a keyboard hotkey to switch the second screen)