Yes, extending is the way to go of course. I am not familiar with S3 cards and drivers, try installing the newest display drivers for one. Switching from clone to extended always been a bit buggy in the past, so try doing extented after a fresh reboot. If you manage to get it to work in windows, resolume will follow.
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To anon
16:9 through s-video out, mmm, think about it for a while

Resolume probably supports it, never looked into it to be honest, as every club in the country is still 4:3, shame is, resolume is not the only thing in your pipe-line. V4, beamers, all have to be genuine 16:9.
[Edited on 14-2-2005 by Sense]