You didn't say what operating system(s) you are looking at using.
To do this cross platform, I've had good success with VNC running on one of the machines and either win2vnc (for Windows) or x2vnc (for various Unices).
The *2vnc programs create a 1 pixel window on whichever side of the monitor you specify. Once your mouse hits it, it "magically" appears on the machine running the VNC server. Once configured, this can be pretty much seamless. You can even copy & paste text between the machines.
I've had a Linux box, a Mac, and a Windows box set up using a single keyboard and mouse (controlled by the Linux box), each with their own monitor side-by-side. To someone casually walking by, it first looks like a three-monitor setup. Until they realize that there are three separate operating systems in play!