This still didn't solve the problem, especially when I maximized the video screen. I then took out the external video card and ran it w/ the on-board video and viola! it work like it should (except it didn't have great latency). At least I didn't get any more realtime delays and was on right path.
Changing the video driver to 'vesa' w/ the external video card fixed that one. Latency was slightly worse then the native drivers, but not that bad. Maybe there's a better graphics card out there (PCI-e)
