While this may be an old thread, apparently the issue still exists as it happened to me yesterday after upgrading from Snow Leopard to Mountain Lion... no external display recognition. I recall having this problem the very first time I attampeted to connect two external displays to a MBP some three years ago using a Diamond adapter. I had to download the Diamond driver in order for it to work. And so yesterday, after all else failed, it all started to come back to me... how, once I learned I needed the driver, & having gone to the Diamond web site where the driver was unavailable, I was directed upon a google search, to displaylink, where one can find a free driver download.
And so I thought, it's worth a shot for it's very possible the upgrade had erased the driver. After downloading the driver, shutting down my computer & unplugging everything, I started the computer back up & reconnected all the hardware & it immediately recognized my two HP displays!