Apple Developer Program?
 

Can I assume you guys (Displaylink) have paid the money to join the Apple Developer program? If not, you really should. If so, can you tell us if the new 10.7.4 seed to developers fixes any of the graphics issues people are experiencing here? Supposedly, one of the main focus areas in 10.7.4 is graphics.

what graphics issues do you suspect would be fixed choppy? sluggishness when moving windows and stuff around on the screen? ru using the diamond device?

Focus on graphics is all good and well.. but DisplayLink is limited by the USB bandwidth more than anything.

He's probably talking about the half dozen or so issues that prevent people from using their DisplayLink adapter!!! (Here's how mine looks.)

We test new OS releases as soon as they are seeded to developers. Unfortunately the latest 10.7.4 beta hasn't fixed yet some of the issues experienced here.

As for your specific problem, could you please collect debug info using the tool here http://www.displaylink.com/support/ticket.php?id=269 and post the output file? Thanks

Here it is...