I have to install Ubuntu on a two-screen setup. How should I do that and what are some specific things that I should keep in mind while doing it. Will it break anything?
I use an ATI graphics card
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System -> Preferences -> Monitors gives you a useful graphical interface to easily set this up. This works very well for me using the open source ATI drivers. I doubt you will encounter any great problems (using a fairly mainstream graphics card). If you're using proprietary drivers you may need to use the vender's own tool, e.g. the Nvidia config utility.
It shouldn't 'break' anything, the worst case scenario is you end up with the same thing on both screens.
Depends on your video drivers. For nvidia you need to use the nivida configure tool. However to make it premenent, you need to run it from command line
sudo nvidia-settings and save to x-config after you set it up.
I didn't notice the ATI comment. I am unfamiliar with ATI's flags, I tend to avoid ATI cards because of their shitty linux drivers, I fought with them enough for a lifetime.
I had difficulty getting my ATI card to work in anything other than mirror mode until I settled on the steps at https://askubuntu.com/a/104265/19802
Apart from that - things to keep in mind
One useful item I just discovered was
Alt+Ctrl+F2 to get to a terminal screen and then
unity &disown to relaunch the desktop (without closing applications - yay!)
Alt+Ctrl+F7 will get you back to the new desktop - complete with shortcut keys (like
Alt+Tab). Ok, so I was clicking on everything in compiz to test out my new speed,but still...