External monitor problem after Lion upgrade

Hi,
I have a 20" iMac which has a screen resolution of 1680x1050(ATI Radeon HD 2600 Pro 256 MB).  I have been using an additional 168x1050 monitor(Dell 2009W) in dual screen mode.  This was working fine with Leopard, Snow Leopard, but it does not work after I upgraded to Lion.  The screen appears to look fine for a few seconds then blanks out for a second and repeats.   The only way I can use my extra monitor is by reducing the resolution to  1360x768. 
Does anyone know of a fix or if apple is working on a fix.   I called apple support, but all of their suggestion (fix disk permisions, reset PRam) did not help. 
Thanks for any help.
Paul

Similar problem here with a 15" MacBook Pro purchased in late 2009. Connected to a new Dell ST2210 21.5" display via a DVI cable and Apple's mini display port to single link dvi adapter. The cable is dual link but seems to work fine the majority of the time.
When I wake my mac from sleep 1 time out of 3 I see black and white static on my external screen that only goes away when I unplug the screen or power it up and down.
I've tested another older MacBook Pro with the screen and everything works fine and when I connect with a different dvi cable I get the same issue.
When I called Apple support, they said it was a software issue and directed me to remove some .plist files in my library. I did what they said on the phone and it seemed to work for maybe 6 sleep cycles but the issue came back again. Since then I've reset the VRAM following their directions in a support article on the subject of external display static. (http://support.apple.com/kb/TS2377)
Does anyone know of a way to fix this or if Apple is actually listening? VGA works fine but I hate the quality of VGA compared to DVI. Should I look into getting an mini display port to dvi adapter from someone other than Apple?
It's annoying to have purchased a perfectly Mac compatible monitor which you really need, just to discover that Apple is having trouble with their mini display port...
Here's another guy with a similar issue and the same monitor (http://en.community.dell.com/support-forums/peripherals/f/3529/t/19330464.aspx#1 9691738). However, from the research I've done, his conclusion about it being the monitor seems to be false, especially with all the complaints here about similar issues regardless of display model.
I need an answer that does not include going back to VGA. What are your suggestions? I do have HDMI but would rather not shell out the money for a cable and adapter...

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