I think this could be a problem with the interaction with your primary graphics driver. This is very old (before the release of Windows 7) so probably has issues with DisplayLink software:
Graphics: ATI MOBILITY RADEON X1400 (ATI Technologies Inc.)
Graphics Driver: 8.561.0.0 Dated 2008-12-01
Could you try updating this and see if it solves the issue?
Thanks
Wim
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