Comparing your xorg file to mine, I noticed that you have some stuff in a different section. Try taking this code out of the device section and put in the screen section.
Code:
Option "ConnectedMonitor" "CRT, CRT"
Option "MetaModes" "1280x1024,1280x1024; 1280x1024"
Option "TwinViewOrientation" "RightOf"
Option "SecondMonitorHorizSync" "30-81"
Option "SecondMonitorVertRefresh" "56-75"
also add the twinview option to your screen section. So device should be the same, minus what I put in the code tags, and screen should have the stuff I put in the code tags plus
Option "TwinView" "true"
right above Option "ConnectedMonitor" "CRT, CRT"
Hope that helps.