I think the problem is your Matrox graphics. On Windows 7 (and Vista) we support WDDM graphics drivers from Intel, ATI (AMD), NVIDIA and Via. We need to have a WDDM graphics card driver installed as we use this for all the 3D effects.
Matrox are not supported by DisplayLink and I don't think they have a WDDM driver for Windows 7. I'm afraid I don't think this will work with your Matrox graphics card.
Wim
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