I get exactly the same problem in an HP dv3 with a fresh-installed Natty. I'm 
using the proprietary driver from ATI (v11.4) with unity and compiz running. I 
have radeon and intel_ips modules blacklisted.
When I connect the external VGA monitor it goes to login screen and, if I do 
login, I get two black screens with a frozen mouse pointer in the middle of 
both. Booting up with the monitor already plugged in yields the same scenario. 
Occasionally, I can see a stack trace blinking on and off both monitors. I'll 
try to get a photo of it.
I also tried booting with recovery's failsafe mode and setup xorg.conf for a 
dual-head with "$ aticonfig --initial=dual-head -f", but it didn't solve it :(

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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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