1) it depends on the TV. some TVs just flash a bright light to go from 120 to 240. Others actually run at 240 Hz
2) make sure you actually like 120 or 240Hz. I disabled both on my TV for everything (didn't care about the feature, just happened to come with my TV). Go to the store and watch the TV's you are interested in. Play with the settings. You could even go to CNET for some recommended settings for a dark room, but I doubt you'll be viewing the TV in a dark room. No point buying a feature that you can't visually appreciate.