I have only the VGA-MDP adapter, but I hook up to a wide variety of projectors, monitors, and panels on a frequent basis. I've had an issue only twice and on different devices: I had the panel-going-to-sleep-and-back-on-again-repeat problem which an unplug-replug of the adapter fixed, and I had the video signal weirdness (lines, flashing, etc) with a projector, and a power cycle of the MB fixed that. Both happened pre-1.2 update.
Speculating about the issues described here, they all sound like signal quality issues of one sort or another, digital or analog as the case may be. There are many things in the path that can affect signal quality from a bad connection (suspect in my issue #1 above) to the video driver chip getting "confused" for some hard or soft reason and requiring to be reset (issue #2 above). They can be transient as in my case, or they can be repeatable in the case of a bad component, firmware, software, or something in the path being out of specification.
In the case of a display working with another system: Turning off the internal display boosts the available power for external signaling and thus appear to "fix" the problem. Using a shorter cable, and/or replacing a connector or the entire adapter may fix a bad or out of spec. connection. Lastly if nothing else works try another system of the same type with the display to see if the fault lies with the connector or video path inside your system. It's also possible for out-of-spec power to the display to cause signaling issues, try the display on a different power circuit. Note that a signal quality issue may work with one combination of system/parts, but not another. The new system with the old "working" display may not be the issue, but sensitive to one that the "old" system did not expose.
"The nice thing about standards is that there are so many to choose from!" 🙂
James