They worked from the live CD because you were using the open source
Nouveau driver. I couldn't set up the nvidia driver either for dual
monitors but when I did a fresh install without the internet (and hence
no binary drivers), dual monitors worked fine.

Quite a few people are having a problem with nvidia drivers and dual
monitors, check out this thread.

http://ubuntuforums.org/showthread.php?t=1859730

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which is subscribed to nvidia-graphics-drivers-173 in Ubuntu.
https://bugs.launchpad.net/bugs/877051

Title:
  dual monitors not recognized

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/nvidia-graphics-drivers-173/+bug/877051/+subscriptions

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