The guys over at Canonical Paid support did a great job of helping me solve 
this issue (at least for Lucid).
We would appreciate the communities help for getting this working in Oneric or 
Preceis

The zip file contains a
udev file (70-persistant-displaylink.rules)
readme
xorg.conf

please read the readme carefully. If you follow the instructions it will work.
With one exception
There is one small bug in the udev.
ATTR{name}=="udlfb"

is not always the same so you will need to 
use this command as specified in the readme

udevadm info --attribute-walk --path=$(udevadm info --query=path
--name=/dev/fb0)

to discover an attribute that is correct for your device.
my device  Liliput UM-70 USB monitor is for example ATTR{name}=="Display Link 
Mon"

Again the Readme is very complete. So please read it several times and
follow the instructions.

Thanks again to the great guys at Canonical Support for getting this
working.

** Attachment added: "udev readme and xorg.conf"
   
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-displaylink/+bug/812594/+attachment/2786672/+files/24583-instructions.tar.gz

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https://bugs.launchpad.net/bugs/812594

Title:
  HP USB Graphics Adapter (Displaylink) shows green screen

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