Hey, thanks for the quick reply!
1. It got so bad and I got so frustrated that I again removed all display link drivers and then re-installed them. This was yesterday, and the screen hasnt frozen yet, so I am beginning to think that it's all good now... but I am still sceptical, because before, it was also running fine some days and others not. Anyways, I downloaded the software you pointed out and will run it, once the error recurrs.
2. Enabling video mode does not resolve the problem, though it changes its effects. The graphics become more of a general "mush" instead of being overly pixelated. Also, the effect is then no longer limited to the animated content, but affects the entire screen (e.g. browser game: Before it was just the Flash graphics that got messed up, now the browser itself and the taskbar are also affected). It's kind of hard to describe, but video mode on or off, either way, the monitor does not display the screen content correctly.
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