Alright, so I killed Catalyst and now the second desktop stays there about a quarter of the time when I change the channel and the rest of the time it doesn't. And the times when it does work the resolution is all jazzed up but other times it's not. However, every time I turn the TV on the screen flashes, leading me to believe that it's aware there is a second monitor for a brief second or two.
I'm just wondering, does this sound more like a problem with the card or the TV to you?