Firstly, with the Indivision i've read that it can display 1024x768 using a combination of the Indivision (plus supplied software) and the AGA chipset. Is this true ?
Yes, and possibly higher.
Using the Indivision AGA will high resolutions eat away at my chip ram ?
Yes, though things like FBlit can help.
I've seen on eBay these cheap arcade scan doublers / flicker fixers for like 30 euros. I've heard they can be easily (as in REALLY easily) to work with the Amiga. Are they any good ? Will they perform anywhere close to the Indy AGA?
Some are usable, but no, not as good as Indivision and also they won't get you 1024x768.