This looks quite similar to some problems unity was having earlier in
the cycle with monitor hotplug.  If you have both displays connected
before unity starts, or restart unity after plugging both displays in,
does this go away?

** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: New => Incomplete

** Package changed: xserver-xorg-video-ati (Ubuntu) => unity (Ubuntu)

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https://bugs.launchpad.net/bugs/823576

Title:
  [Inspiron 1122/M102z] External video severely corruped (as is primary
  display)

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