Version:           4:4.0.3-0ubuntu2 (using KDE 4.0.3)
Installed from:    Ubuntu Packages
Compiler:          binary package from ubuntu 
OS:                Linux

When I connect a second display to the VGA-output of my laptop (Intel Corporation Mobile 945GM/GMS/GME, 943/940GML Express Integrated Graphics Controller (rev 03) on a MSI S262) with a bigger resolution than the internal display, the bigger display has two desktops, a big one and a small one, overlapping each other. Sometimes the small one owns the icons/widgets placed on the desktop, sometimes the big. Furthermore the panel is sometimes situated in the small area and sometimes in the bigger area (the Add-Widgets-widget in the top right corner is in both areas for example).

Opening the Display settings, with desktop effects deactivated, sets the resolution of both screens to 1024x768. Changing any value in the Display settings has no effect. The Apply-Button remains disabled. With desktop effects activated, the resolution is also set to 1024x768 but the display remains black and only the cursor is visible.