If your videocard has two outputs and you want dualscreen, be sure to switch on both monitors, if I don't do that, I get the same result. What I find particularly disturbing, is the fact that even switching consoles with ctrl-alt-F1 doesn't wake up the videodriver, and also ctrl-alt-backspace doesn't wake up the videocard (to quit X the hard way). Someone implementing that driver did a good job of screwing things up in my humble opinion.
If you only have one monitor but still two outputs, try to switch the monitor to the other output. Hopefully Windows will find out about it and let you work as you expect. If your card has only one video-output, you have a different problem than I had and I cannot help you further, sorry.
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