Personally I would use the import command instead, since you can save it in your favourite format, and has more options, eg:
Code:
import -window root ~/screenshot-$(date +%F--%H-%M-%S).png
A quick test with my own root window gave more than 90% reduction in image size, and png is probably more portable than xwd. I suppose you could use xwdtopnm and then pnmtopng but that seems unnecessary.
I'm assuming that since you can't grab images from the second screen that you're using Xinerama. You would have to initiate the xwd command above from a terminal open on the second screen. If you're using an NVidia video card, I understand that TwinView doesn't have this limitation and is faster to boot.