I had a problem with this also and had to restart before it would recognize the monitor...it would actually act like it was switching to dual displays but it never sent the signal.
Restarting it fixed it that time but I dont really use the external monitor that much, I will try it again when I have a chance and let you know.
Ive been in class since 8am sorry, now 12:33pm and in about 15 mins ill get back and be able to test it before my next class.
I envy you greatly.I use both a minidisplay to dvi for my desktop monitor, and a minidisplay to hdmi for my tv hookup and both are working like normal after the update. I didn't reset SMC, PRAM, repair permissions, etc... just a few shutdown & startups have occurred since I applied the update.
Now I dont have to restart, just have to detect displays when I connect or disconnect which is slightly less annoying. I'm not sure what's going on. If you ever check in osx let me know. Did it automatically find the display?