Mountain Lion hang/freeze on Mini DisplayPort to VGA + AC Power

I recently installed Mountain Lion from Snow Leopard a couple days ago, and to my dismay, whenever I connect my desktop display while the computer is plugged in, the computer immediately begins to lose stability and responsiveness, eventually with a "free-cursor" freeze.  The one key thing that starts it reliably is clicking on any OS X system icons in the menu bar once the display is being driven and it's plugged into power.  The cursor immediately turns into a spinning pinwheel. 
Now, the remedy that I have found through trial and error is simply unplugging the MagSafe connector.  The computer hurries to catch up and begins to "process" any mouseclicks I made while frozen with the pinwheel--all at once--until it is back up to speed again.
I have reset the PRAM/NVRAM, SMC, reinstalled 10.8, disabled automatic graphics switching, and I have come up empty-handed.  Never had any issues with the external display operation before.
Another thing, trying to boot the computer with both things connected?  Forget it.  The whole grey apple screen just sits there waiting for me to unplug the power, and in the mirrored 16:9 aspect ratio of the monitor.  If it does manage to get to the logon screen, entering a password turns everything whitish with just the little password-accepted cog spinning to the right of where the password box used to be.
I appreciate all and any help, I have enjoyed what I have seen of 10.8 on my other machines, but I am having a hard time diagnosing this issue.

Update: I was able to test out the HDMI adapter as well and the same issue occured.  I'm stumped.  10.8.1 maybe.

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