Most monitor switchers are mechanical. It's just a big clunky rotating switch on a box. They degrade picture quality a little too, especially if you get long VGA cables.
Some monitor switchers are electronic. Eyetech's MON range are operated by a toggle that can be mounted on the front of your tower and is powered from a 3.5" powerfeed inside. This one is a lot better and won't lose much quality.
Finally there are monitors which have switchers built in, usually top-end ones like Ilyama.
But in all cases you'll have to do the switching manually.