KVM switch + Windows 7 creates monitor switching nightmare

I recently bought a Dell XPS desktop (Windows7; 64 bit) which came with both DVI and VGA output and I have a company laptop (Win 2000) which only has VGA output.  My monitor (Dell 24 inch) fortunately has both DVI and VGA input so here is how I could share monitor without the KVM switch. 

I connected Dell XPS to monitor via DVI cable only and connected old laptop to monitor via VGA cable.  Then in windows 7 I right click on desktop, go to screen resolution, Advanced setttings, monitor and uncheck the box that says "hide display that display card cannot show".  Close the screen resolution window, open it again and it showed multiple display box and in drop down menu in that box I have 4 different selection possibilities. 1.  Duplicate display, 2. Extend display, 3. Show desktop on 1 and show desktop on 2.  My desktop 1 is DVI and desktop 2 is VGA. So if I am using Desktop 1 then I can switch to 2 by just selecting it.  If I am using old laptop (Desktop 2) with win 2000 the right clicking and selecting display option and selecting it to show notebook will switch me back to my XPS (Desktop1).  Sounds bit confusing but its really not.

I also share wireless keyboard and mouse which I connect using usb connection that came with Belkin Flip (Flip did not work for me for sharing monitors between windows 7 and 2000) but I can share keyboard and mouse. 

So if you happen to have one computer with DVI and one with VGA output and monitor with both inputs then you should be able to bypass the KVM switch to share a monitor.

The solution presented by Xenubite, as others have also stated, does work for me. While it may not be an official or authorized 'fix' assuming Microsoft even deems a 'fix' is necessary, given their seeming lack of positive information in this thread, this 'fix' is a good enough solution for me.  I will continue to monitor this thread for further developments, but not daily as i used to do.  Many thanks Xenubite for not only finding this solution but also for posting it here for others to take advantage of.

Looks like it's a usable workaround.. we'll see what side effects come into play with driver updates etc, monitor configurations, if any.

I hope Microsoft is at least listening and puts some simple support into the O/S to allow disabling of this functionality soon.

I'll make mention of it in the other two threads related to problems caused by EDID.

Since this mostly affects people using KVM switches MS does not endorse, there may not ever be a really elegant solution to it. I'm only hoping for a registry flag I could set to disable constant monitor configuration polling, so that I could set up the monitors once without the KVM switch, freeze the configuration, and then have that configuration stick no matter how I plug the cables. To refresh the configuration I would have to go to Control Panel display settings and click "Detect". Which I think is basically how XP worked.

My guess is the motivation for the constant monitor polling and ultra conservative settings when there is no EDID is to make it very hard for us to screw up and end up in a situation where there is no picture on the screen. A noble goal, but in this case it had pretty severe side effects.

The underlying issue appears to be effecting people running mutliple monitors and in some cases it looks like even people running single monitors. So i think it goes a bit beyond the KVM user base. That this thread has more attention than the others may be a problem for getting microsofts attention though.