I ran "kdesudo displayconfig" from a konsole and I get the exact error message 
as in the original posters (I'm running hardy alpha6).

After fiddling a bit it seems that as pointed out above adding the
"ServerLayout" section does the trick. Add it to xorg.conf and it opens
again (it won't close anymore but I'll raise another bug for that).

-- 
The module Monitor & Display could not be loaded.
https://bugs.launchpad.net/bugs/173768
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