Guys as stated in other posts the issues you are mentioning here are not due to the DisplayLink drivers. We could release 1.7b5 or 1.7b324 or 2.5.24 and still we would have no hope of fixing those.
These issues (as far as we and other software developers in our same situation can tell) are bugs in Lion: once they will be fixed any release from 1.7b2 will see these issues fixed as well.
And if Apple did decide to go the extra inch and fix ALL the regressions in Lion, even 1.7b1 would work!
That said I'm sure we have some bugs in the drivers as well and we're working on them, but not these: we can't make icons disappear or make drag&drop stick. We could stop the login screen to work if we tried but unfortunately this is another known Lion problem on systems with NVIDIA 9400/9600. If you have such a system please contact Apple.
We see improvements in the 10.7.2 developer preview but some issues are still there..
Carlo
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