That is funny. For me everything worked fine after upgrading 14.04. The
dual monitor set up works briliantly after using the additional driver
package for ati radeon graphic card adapters (fglrxx-updates).

It stopped working and producing exactly the same behaviour after
working on another issue with compiz (skydome, cube rotating not working
properly under 14.04). After trying to fix that, it fails, and the dual
monitor vanished after logging in, leaving two black blank screens. In
the error log there were repeatedly the above mentioned message.

The odd workaround works (plugging off), after changing from Terminal 8
to 7 again (ctrl-alt-F8 and then ctrl-alt-F7 again), then immediately
the second monitor came back again....

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You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-intel in Ubuntu.
https://bugs.launchpad.net/bugs/1124328

Title:
  *ERROR* failed to set mode on [CRTC:7]

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