More observation:

With Compiz:
- I need to have the Laptop screen enabled to keep the dual display active. If 
I choose to turn off the laptop screen (from the gnome-display settings), both 
screens go black.  Once I get into this settings, there is no coming out of it. 
If I press "F7" I get to cycle the screen but both screesn will be black. I 
have to restart GDM to get back into it.

Without Compiz:
- If I do the same as above, the same problem exists but I can re-activate the 
screens by pressing "F7" to cycle the screen setup. 

I think it is partly a compiz thing.

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https://bugs.launchpad.net/bugs/732050

Title:
  Dual display blanks both screens . Can only see the cursor

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