I too am having the exact issue as first posted. (There are people in this forum with different problems of resolutions not being available, and while it may be related in the overall improper work of the driver or hardware, it's not the same as the described first post and that may have been fixed elsewhere, but not the original issue).
There are a number of applications that this rendering issue happens in.
I have created a small video capture of my monitor screens (identical make/models and resolutions/settings) side by side .. (DisplayLink glitch is seen on the right):
http://www.youtube.com/watch?v=hZwExkGHwNQ