Anyone short sold a house and lived to tell about it?

I have an offer on a house that has been on the market for 5 years. Its in another state. The bank will accept the short sale, but I am hesitant. Will it kill me in the future as far as buying a home?

Old relationship/stupid decisions. My wife isn't on the loan so her credit is unaffected. Would really like to get rid of it though.

Need one of you mortgage gurus to tell me than in 2-3 years I will be able to get a mortgage with 20% down.