As someone has previously said... "What's the point in having a luxury car when one can only turn right by making three left turns?
Everything points to this being a problem with "Dynamic Device Mapping" and there must be a software way around it because until a few days ago when I reinstalled W7 Retail, my KVM switching was running just fine (using build 7100). So unless it is a DDM "feature"
that was inserted at the last minute into the final version (which is unlikely), a software fix must be possible.
Many others are having problems with their Windows 7 machines suffering this "resolution identity" problem when using KVM switches and there are threads all over the web from bewildered people mostly being answered by well-intentioned folk offering misleading
advice
As regards changing the hardware, there doesn't seem to be any "PS/2 solution" as no PS/2 KVM with "true mapping" currently exists and as PS/2 is pretty much "legacy tech" now, it is unlikely that anyone will develop one in the future. The ConnectPRO UR-14+
model with USB DDM technology, which provides true USB device mapping to each connected device WILL work with Windows 7 machines but this is only a solution for those with USB connections. The DDM patented technology is the ONLY reliable solution that I've
managed to find for sharing a keyboard and mouse among Windows 7 systems and nobody makes a KVM switch for PS2 with this technology on-board.
My conclusion... For existing and complex PS2 KVM set-ups Windows 7 is a very bad idea unless one is prepared to spend lots of money on a very expensive new KVM switch and accompanying USB connections to all PCs involved. This is
not a solution for those home users who were quite happy to spend $30 on a small 4-port switch on eBay but are not so happy to be told that they now have to buy an expensive rack-mount industrial KVM switch in order to get back to the same
place they were in a few years ago!
A software solution should be a priority for MS since this issue will only affect an increasing number of systems as more people upgrade to W7. DDM may have its advantages but from where I'm sitting the only "dynamic" thing about it is that it makes one want
to boot one's PC out of the window (or should that be "out of Windows"?).