Hi
On the logs you posted, it showed that you are in basic graphics mode, which would fit with the issues you are describing.
Also, your ATI graphics show as:
Graphics: ATI Mobility Radeon HD 4330 (ATI Technologies Inc.)
Graphics Driver: 8.632.1.1000 Dated 2009-08-04
That driver is dated Aug 2009, which is before Windows 7 was officially released. There should be an updated driver for this card and it will probably fix some of the issues you are having. Infact, the older graphics drivers could be making the system fall back to basic rendering with DisplayLink installed, even if you have an Aero theme selected.
Wim
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