Background Gray
 

I can't seem to change my background from gray to anything else. The main monitor (mini display port) shows fine.

Anyone else seeing this behavior on 10.7 and 10.7.1?

Tried resetting.

I get that without displayLink, it's when I turn on my peripheral monitor from being off but still connected. Not sure how to fix it. Have you tried unplugging and plugging back in? Then restarting? Do you have a background set in system preferences? you can right click the screen desktop and choose change background. then unplug the monitor, plug it back in, if that doesn't work, restart.