10.7.3 incompatibility?
 

I just updated to 10.7.3 and upon reboot all my screens are blue, except for my DisplayLink screen which remains black. I have to unplug everything to get my MacBook Pro screen to display again. I'm then able to plug in my mini DisplayPort adapter for one monitor, but when plugging in the USB DisplayLink adapter everything goes blue again (black for DisplayLink).

Known issue?

SAME EXACT ISSUE!

I'm so glad I'm not the only one. I already posted what display link manager gave in the thread I made about this.They're going to ask you for what this http://www.displaylink.com/support/ticket.php?id=269 output (a zip file with logs and your system information). I would do so to save the time of them asking you.

Same here after upgrading to 10.7.3 today.

And here's a crash log.

Same boat
 

10.7.3 on a 2009 24" iMac breaks displaylink on UGA-2k-A but my MiMO um-710 works fine. The monitor that was on the UGA-2k-A just keeps flickering.

Same problem
 

I upgraded to 10.7.3 on my mid 2011 macbook air and have this issue, but it is slightly different on two different display link devices. Both devices are connected to displays that are rotated at 90 degrees and worked perfectly on 10.7.2.

The one that doesn't work gives me a blank screen on the display link monitor, but the status LED on the screen indicates that it is getting a signal of some sort. I see the LED on the display link adapter blinking in a very predictable pattern that repeats.

The other display link adapter (which is a higher resolution) works, but only in landscape mode. Not much good when my monitor is on its side :) . When I change the rotation to anything other than standard, I get weird patterns on the display, and there is no resolution to choose from in the display preferences window.

Thanks Phillip for posting the link to the tool. I will run it tomorrow at work. I hope there's a fix soon.

Also lost rotation ability..
 

After upgrade to 10.7.3..

However holding Command Option then press System Preference will return the rotation dropdown menu.. however it also display weird lens when switch to 90 degrees./ potrait mode.

Yes I should add I was also using a monitor in portrait mode. I'll have to check to see if it works in landscape.

Same issue
 

Also the same issue in 10.7.3. I also had my displaylink display rotated.

Does anyone now how to reset the orientation? Maybe this helps to get the display at least working again.

Thanks for your reports.
Are you using the DisplayLink screen in a rotated mode? In case, could you please try this:
Boot without the DisplayLink adapter connected then run in a terminal:

sudo rm -f /Library/Preferences/com.apple.window*

rm -f /Users/"USERNAME"/Library/Preferences/ByHost/com.apple.window*

This should reset your display settings.
Reconnect the DisplayLink adapter and check if the connected display is working correctly.

We are working on trying to solve the rotated mode issue.