I'm considering purchasing an X2VGA2 to hook my PS3 up to my monitor; however, I'm wondering if I will be able to watch Bluray movies over a Component->X2VGA2->VGA connection given the lack of HDCP compliance.

I also have the option of using a HDMI-DVI cable and hooking the console directly to my monitor, which supports HDCP over DVI. This is preferable, but my monitor has only 1 DVI connection - is there spliiter or switch that lets me connect 2 DVI outputs to 1 input? I'd hate to have to disconnect my PC display and connect my PS3 everytime I want to play it.

While I don't know much about the X2VGA2 device I can guarantee that you would not get the optimum quality out of that as you would want.

HDFury is a device you may want to consider, look at the Divineo website and look for the HDFury.

This is a single piece device that requires no extra power adapters, it is about the size of an HDMI - DVI converter.

It takes any HDCP stream over DVI/HDMI and converts it to RGB VGA.
That can be used on any non-HDCP compliant device.
USD @ divineo is 129.99

So its not a bad deal.

By all means do not use a transcoder, or spend that kind of money on a rediculous HDMI to vga adapter. Just get a DVI switch. That way you are not getting an inferior picture by degragding it to analog.