I was reading in the Servo library that is supports up to 48 servos when using the Arudino Mega. (Though it will disable PWM on pins 11 and 12). When I have looked elsewhere online some say that to use a Servo you must plug it in to a PWM pin, which the Mega only has 14 of. So is the above statement wrong and a servo will work on any digital pin with the Arduino Mega?
Will I loose any functionality if I plug a servo signal wire into a non-PWM digital pin?
There are different servo libraries, and they work differently.
Carefully read and follow the instructions for the servo library that you have downloaded.
I am using the built in Servo library that comes with Arudino IDE.
Servos work on all pins, including the PWM pins even the analog inputs which are digital anyway.
Caveat: I don't have a Mega, only an Uno, so have only personally put that to the test on an Uno.
The Servo library will run servos on any digital pin. It does not need or use the special facilities of PWM pins. The library documentation is correct.
If you have read that standard hobby-type servos need PWM pins then wherever you read it should be placed on the "Don't know what they're talking about." list and ignored in future.
Steve