I wondered if anyone knows anything about staff selection either at specialist gamedev schools or universities that offer these courses. It might be a cool job - anyone have any experience/links/advice...?

I don''t know about a specialist gamedev schools, but if they present themselves as a university, then a Masters degree is a minimum requirment. Aside from that I''d just guess they would want someone with industry credibility: at least have worked on a shipped game or be a well known author in the industry.

And believe me, teaching isn''t "cool" all the time.

yspotua is more or less correct. I work in department at a major university and the primary criteria for staff selection is that they are currently working in the industry. Other factors include their position in the firm they work for and the amount of "free time".