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I always like a "divide and conquer" approach.
First, I'd get Hoster running with a SINGLE DISPLAY. Just don't worry about the second display until you can run Hoster and see the Show Display views.
Second, fire up DISPLAY #2 following the manual steps, and all the good advice given here. To my understanding, you MUST have Display #2 turned on and plugged into the computer video connector (with an S-Video converter if needed), then turn on the computer. If you turn the computer on first, it will revert back to single display mode and your second display won't be sent any signal (reset it up again if this happens).
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