After you hook everything up and close it up, it will go to sleep. Move the mouse or hit a button on the keyboard and it will reawaken and stay awake.
I tried this but nothing happened. I have a wireless keyboard and mouse, do I need to have a keyboard and mouse connected separately to my USB hub?
Are they Bluetooth? If so, you need to make sure you have the option selected to "Allow Bluetooth devices to wake this computer" in the Bluetooth settings.
cool. are you able to have the option of putting your MacBook to sleep once you have installed insomniaX?
I was going to ask a sort - of similar question, but didn't want to start a new topic.
Is there any other way to select which displays you want to use other than closing / opening the MacBook lids?
On most (OMG!) Windows laptops there's a button (usually a function one) that you can press to toggle between
laptop screen - > both external & laptop - > Just external
Anything similar for the Mac, or is closing the lid the only option?
I tried this but nothing happened. I have a wireless keyboard and mouse, do I need to have a keyboard and mouse connected separately to my USB hub?

This is the only option. You will notice that the mac way is much more functional for cloning / dual screening between the laptop and an external than it is on a Windows machine.
I'll have to disagree with you there. I'd say the Mac way is worse 🙁
I was converting and burning a .avi file to DVD use just my external monitor (and Mac in clamshell mode) and my MB nearly got to 100ºC!
Now if I'd known I'd have opened it, or if it had an option like windows, I would never have had the problem in the first place 😀
btw - Macs are still better than PCs 😛
Once you have your laptop in clamshell mode, you can open it up to give it more ventilation.