1.6b3 will remove the 0x0 resolution and improve the resolution management.
About the rotation problem there are some relevant errors in the logs. I think you're connecting this Dell 1706FPV to the adapter, and at least once the edid has not been read correctly it seems (cabling issue?).
First thing I'd restore the DisplayLink settings to a pristine state. The quick way is to use the uninstaller in /Applications/DisplayLink, and without rebooting installing the 1.6b2 again.
However before that I'd do a repair permissions with Disk Utility: you have all sorts of errors in the system log and some of them are permissions related.
If this does not help I'd wait for 1.6b3 to see if the new resolution management there changes anything.
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