No, you don't have to use standard pegs! Geared tuners work just fine! There are really expensive ones that curve like a traditional fiddlehead: http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=200407673021&rvr_id=&crlp=1_263602_263622&UA=WXI7&GUID=708d00ee1290a0aad3b5e3d5ff9d92de&itemid=200407673021&ff4=263602_263622
and this builder uses guitar tuners
http://www.violin-neolin.com/en_US/innovation-design-luthier.html
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I bought 3-on-a-side classical guitar tuners and now kind of wish I'd used regular guitar tuners. The large-diameter shafts of the classical tuners make tuning EXTREMELY sensitive! The tiniest touch results in the tuner jumping around....
I'm getting the hang of it now, but I've never had an instrument so sensitive. I can see why "real" violins use fine-tuners.