Will inline/cyclocross levers work with a regular road brake? For some reason I was under the impression that this combonation was not compatible. Thanks.

yes... perfectly compatible

Could someone recommend a few choices in levers for me?

They will absolutely work. I'm using a Tektro RX 2.1 'cross lever for my conversion. You can get a good look at it here: https://www.pbase.com/flippinghades/image/40613941, or another look here: https://www.pbase.com/flippinghades/image/40613948 (when it still had two brakes). They work quite well, but they're not the most comfortable of levers. They're a lot more comfy when I wear my full-finger gloves.

nashbar has cheap ones

i'm satisfied with mine.

well seeing as how CX levers were designed to be used with road aero lever systems to provide a top mount brake solution so you could brake from the tops rather than going to the hoods/drops to get at your brake lever, I don't know why they wouldn't work =P

I use a Cane Creek Crosstop cyclocross lever. A set cost $25.

I'm thinking of getting a Tektro RX 2.1 from Nashbar but they come in only 31.8 mm. Do you have to use shims to mount them on a 26 mm or 25.4 mm bar? Is this a safe/workable solution?
Thanks!

i have the nashbar levers and am satisfied. i used a shim made of a cut-up shaws 'frequent shopper' card. i cut it to fit the width of the brake clamp (term?) and then cut it to the circumfrence of the bar. seems to work so far. you might also try using snips to cut a width from a soda can.