I'd almost go as far as to say that there is no such thing as too much fiber! Its more about the total amount of fiber you take a day than how much at one time. You should have a good amount of fiber, at least 5-10grams(soluble and/or insoluble) with every meal you eat!
yep more the better helps absorb cholesterol too, just make sure you drink enough water to not plug up.
i usually go for 2 table spoons a meal of ground flax seed
Let's not forget fiber actually impairs absorption of other nutrients, including protein. Somewhere in the realm of 5% of protein isnt absorbed when taken with a high fiber meal. I think that the benefits of fiber outweigh the minor absorption impairments.
Personally I like those Fiber One bars, and eat one with each shake I drink. I also get in at least a gallon of water/day as well, and I take digestive enzymes-Acidophilus-....doing these things keeps everything flowing nicely for me at least.