All, Note that I've filed bug [1] with updated information. On such bug, Bryce pointed out that a newer kernel should contain patches fixing this issue. After installing the newer kernel in the Ubuntu's daily builds the issue was fixed.
Unfortunately, I've been unable to bisect the patches to determine which one is fixing this issue. IS someone has a bit a free time and can help with this, it would be awesome. See more information in [1]. Thank you! [1]: https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video- intel/+bug/761236 -- You received this bug notification because you are a member of Ubuntu Desktop Bugs, which is subscribed to gnome-desktop in Ubuntu. https://bugs.launchpad.net/bugs/737891 Title: [Arrandale] gnome-display-properties unable to correctly enable monitors connected to VGA -- desktop-bugs mailing list desktop-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/desktop-bugs