I have a PS/2 & USB Mouse/Keyboard/VGA KVM switch that I have had since just before the release of Vista. I only use it to share a LCD display between my PC and my PowerMac G5.
My PC uses a Gigabyte GV-NX86T256H GeForce 8600GT graphics card. Despite it being an approved nVidia GeForce Series 8 graphics card, I have experienced nVidia GeForce graphics driver and Windows 64bit OS issues. The latest version to work in Vista is either the 182.50 WHQL driver or the 186.16 driver downloaded from Gigabyte....the nVidia GeForce versions that have not worked are the 185, 186, 190, 191......I have not tried the even newer version drivers..........
The 182.50 driver works with the KVM switch when installed in Vista but not in Windows 7. I have not yet tried the 186.18 driver in Vista to see if it also works with the KVM switch but it does not work with Windows 7.
After reading your post and recognizing that I was experiencing symptom 1. rather than symptom 2., I searched for a pre-Windows 7 RTM (22 October 2009?) dated nVidia GeForce driver that was OK for both Vista and Windows 7 according to the change log and came across the 178.13_geforce_winvista_64bit_english_whql driver released in 2008, which I then installed in Windows 7.
GOOD NEWS : The 178.13 driver works with the KVM switch when installed in Windows 7, with no resolution and/or window shifting when switching the display between computers...... I do not yet know which driver(s), if any, after version 178.13 but before version 182.50 will enable the KVM switch to continue to work with Windows 7.....
Update: 186.16 driver in Vista does not work with the KVM switch