Also running a Macbook Pro i7. After hearing of some success here I tried the install of 1.6v2 once again with "Automatic Graphics Switching" turned off and the Imation Link dongle plugged in.
Worked like a champ after that - watched a replay of the Vanderbilt-Ole Miss game on ESPN.com streaming from my laptop wirelessly to my HDTV!
One thing to note, I have been having a lot of graphics issues in the last month independent of getting the DisplayLink driver loaded. I called Apple and they suggest a SCM reset which seems to have made a huge difference.
http://support.apple.com/kb/HT3964?viewlocale=en_US
Thanks, Jay