*** This bug is a duplicate of bug 838659 ***
https://bugs.launchpad.net/bugs/838659
I just had this problem, the solution I found is quite simple :
# Open Terminal
# Type :
sudo aticonfig --initial=dual-head
# Reboot
Then the Display Setting should be able to activate the second monitor
properly.
Hope this helps someone.
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https://bugs.launchpad.net/bugs/864505
Title:
[Oneiric] Cannot setup dual monitor with AMD 5870
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