I did post this comment in another thread on this board. There are some strange behaviors going on with the thread, though.
In any event, I did try a Gefen DVI Detective and it works fine. Cost $60, and is used to store and send the EDID from the monitor, so the computer thinks it is always attached, even when I switch via KVM or turn the monitor off. The windows to not consolidate sideways to monitor 2 and the open windows do not resize. Problem has gone away. Not good for rollouts to our users, but my test machine is working once again.
My thoughts are that this is copy protection so they can sell Windows 7 as a media player because it protects output similar to how my blue ray player works on our large screen at home. A KVM would not store the serial number of the monitor, and that is what this device does. We have not been able to find any KVM switch anywhere that works and so we have told our Microsoft rep if they want to buy these for all our machines via a credit on our volume license fees, we will continue to work towards rollouts.