I have same problem
I try to installed Mountain Lion from a clean harddisk. And install Display Link Driver right after mountain lion completely installed.
Afterward, if I reboot machine, login screen would not appear.
if I set machine to automatic log, after I log in, despite displaylinke video adapter works, some App stop working or crash, for example, Finder would be "no response" Adobe Flash player stop working, (browsers would not be able to play flash any more, I tried Safari and Chrome), event worth, Macbook regular crash to reboot.
Wish DisplayLink will fix this problem soon.
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