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What is the best way to setup a multi-monitor display?

This may only work on Windows XP. It wasn't tested with older versions of windows.

There are many ways to setup a multi-monitor display. Clone Mode, Dual Mode, Spanning, etc...

These, however, are not really ideal. The most ideal setup for multi-monitor video viewing is to extend the second monitor onto the first. This is done by opening the display properties (right-click on the desktop and select "Properties"), and going to the "Settings" tab.
On the settings tab you should see two squares saying "1" and "2". "1" is the primary monitor and "2" is the secondary (the one you should want to display the video on, which can be assigned to the TV). Using the mouse, drag the "2" box so that it's diagonal to the "1" box.
The reason you want it to be diagonal and not horizontally/vertically adjacent to the first monitor is so that the mouse cursor won't accidently move off-screen when you're working on monitor "1".

After moving the monitor, Windows may ask you if you want to enable the display. Select "yes" and then with the 2nd monitor highlighted, set a resolution and color-depth for it.

You can take advantage of the second monitor within Zoom Player in multiple ways. You can go fullscreen on the second monitor by enabling the setting (Advanced Options / System). You can move the play list to the primary monitor, you can detach the control bar and move that as well.

Also, it is best if you use VMR9 as the Video Renderer (Advanced Options / Playback / Video) on a secondary display as some hardware is incapable of playing video on the secondary display otherwise.