a quick shameless plug
I've been using ScreenRecycler a bit lately, and it (along with its companion JollysFastVNC) really is a beautiful piece of work. In essence, it gives you a "fake" screen that's not actually displayed on your main computer, accessible only by VPN. The extra screen can be placed wherever you like, and Mac OS X's display preferences can be used to match it to its physical location.
It's fast, reliable and responsive: you wouldn't watch movies or play video games on it, but normal use is fine, even using my elderly G4 as a client, with the main laptop on a wireless network. The sole fly in the ointment, and the only thing stopping me from buying it, is that it doesn't yet quite cope with the auxiliary machine having an extra monitor of its own - it works fine, but you can't use both monitors concurrently as separate extra screens. The author, Jolly, assures me he's working on it for the next major release, though - fingers crossed.
