Eyeinthesky.
Interesting point about students fixating on the instruments when flying the real aircraft after having flown the simulator. I haven't struck that one before - but I suppose it could happen occasionally. I wonder if that also applies to airline pilots who of course are brought up on a diet of simulators?
All things being equal, I have found that the average time to first solo is decreased significantly when introductory synthetic trainer simulator sessions are used.
On the other hand, have you seen any evidence that students who take great delight in flying Microsoft Simulator 2000 on their PC's are, in the real aeroplane, fixating on their Cessna 152 artificial horizon to the detriment of keeping an eye outside?