I am affected by the same bug and followed this post to change the
xorg.conf settings: http://ubuntuforums.org/showthread.php?t=1883119

So the text used is:

       SubSection "Display"
            Depth           24
            Virtual         2304 2048
        EndSubSection

This did not help. Does xorg.conf not have any effect in 12.04?

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https://bugs.launchpad.net/bugs/962018

Title:
  Dual Monitor (non-mirored) wont work since Update 9th March

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