Thanks for the quick feedback PoolDoc.

On (1), my wife and I did try out a few swim machines. The only one that really felt like swimming normally was the Fastlane machine by Endless pools. Granted, this was the only one we tried that was not just a jet. The jets are way turbulent and choppy. The Fastlane creates a laminar current using an underwater hydraulic motor and propeller. It is more expensive than a swim jet system, but it generates no bubbles. It looks like there is a smooth powerful river running through your pool. I was lucky enough to find a pool builder who has installed them locally and he took us to a previous install to test it out. It was amazing how natural it was swimming in the current. My wife is a better swimmer than I am (she introduced me to swimming about 6 years ago) and she had trouble keeping up with it just over half speed. We have been contemplating this pool for the last 12 months now so it is not a sudden rash decision.

I do appreciate the advice, I should have mentioned these details in the original post. I would not advise anyone to get any type of swim machine, even this Fastlane machine that I really like, without first testing it out.

On (2)
The swim machine has it's own 5 hp motor located with the pool equipment. It powers the under water propeller using hydraulic fluid. So the pool pump would not be involved with the swim machine.

I am new at this, but I was under the impression that I might need the higher power when vacuuming the pool or to circulate the water faster when shocking/adding chemicals to the pool.
Also I am contemplating the idea of adding solar heating in the future and keeping the gas heater as a secondary heat source. I was thinking the higher power might be needed to get the water on the roof.
I had been thinking of a 3/4 HP 2 speed pump if I can find one. I hear they are rare.
Of course I should have included this information in the first post as well.

Again, I am new at this, so this extra information might not change your 1/2 HP single speed recommendation. I definitely don't have money to throw away, so if I can get by with a smaller single speed pump I can have a simpler controller and save money.

Thanks again for the feedback.
Mike