I have the same problem
The content of some windows (Reminders.app, Messages.app) is stretched horizontally. I need to also click to the left of the buttons to make them work.
The monitor connected to the DisplayLink is a Samsung P2770HD at 1920x1080. My main monitors are an LED Cinema Display (24-inch, late 2008 at 1920x1200) and the built in 15-inch LCD display at 1680x1050. Only the samsung exhibits this stretching effect.
The Display Link driver was working fine (no stretching) before upgrading to Mountain Lion.
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