From the logs, it looks to be working correctly, however you may have some issues on Windows 7 Starter:
Only Basic graphics themes will be available, which may cause some rendering issues. This will be fixed in our next release or in the Alpha here:
http://www.displaylink.org/forum/forumdisplay.php?f=44
Also, Microsoft don't support extend mode in Windows starter edition. As the default display configuration from DisplayLink is extend, then the display will not immediately work.
Refer to this article for more information:
http://kb.displaylink.com/185
Wim