Try using USB hub as possible workaround for resolution
I had the same issue but found a workaround:
1. 10.7.3 - Alpha driver rotation and resolution worked
2. updated to 10.7.4 - when rotated, monitor would only display 1920 x 1200 as resolution and generic monitor profile.
3. plugged the displaylink adapter into a USB hub instead of directly into the Mac and suddenly the correct monitor profile and resolution choices came up.
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