Problem with dual monitor display 12.04

[betafish]

Hi everyone, I'm having an issue on start up, and a general over all display issue. On start up I get an odd error here (http://cocoa.cc/spoof/ubuntuerror.png). Also, here is my system information, System Information (http://cocoa.cc/spoof/ubuntusysteminfo.html). In order to enable dual monitor I had to go to Nvidia settings, and work from it there.
When I go to Settings > Displays, it says I have a massive desktop, twice the size it should be, rather than two displays. I think this may be the problem. I've been trying to disable the sticky mouse thing, and I keep running into errors. Thanks for your help.

[mikewhatever]

The screenshot you've attached is too small. We've seen the default wallpapers many times, so please use alt+PrntScr to take a screenshot of only the focused window.

If you have nvidia-settings installed, Settings>Displays won't works.

[betafish]

I just updated the image. So you guys can see it's entirety. Anyway. I can't go full screen with youtube videos etc, it assumes I have a massive display or something. I also dislike that I can't move my mouse easily between desktops.

[mikewhatever]

The image is the same as it was before, still too small to read the error message.

[betafish]

The image is the same as it was before, still too small to read the error message.
Try clicking on the link in the description rather than the attachment, I'm not sure how to remove the attachment. However I'm positive the image is in full on the web-server I host.
http://cocoa.cc/spoof/ubuntuerror.png