Have you guys concidered including something similar to Desktop coral http://www.donationcoder.com/Software/Mouser/desktopcoral/
in your program. aimed at reducing bezel distortion? If you adjust the size/position of your monitor (most monitors have this setting), you can make the desktop size match the size of your screen including your bezel (ofcourse that part will be 'cut off')

Then you throw those coral boundaries in the cut off parts, and Viola, maximized apps maximize properly, and you can drag apps across to other screens without any visual distortion. The only problems are the start menu, and fullscreen programs tend to ignore this program...
(if using classic shell, the start button issue can be fixed by modifying a skin/button to have a blank space on the left side so it remains on screen)

Attached shows you what it looks like when i create a screenshot, and below it is how i physically see it on my screen.

Yea mostly its used with rainmeter, gadgets, and an older program called samorize (all which display gadgets on the desktop), and thus coral was developed as a way to reserve that screen space so you could see that stuff even with stuff maximized. Never really designed for the purpose im using it for . And i suspect that trying to get full screen apps to behave may be the hardest part.

i know AMDs Catalyst Control Center, can scale the monitor to correct for underscan and overscan, but they might be relying on their hardware to do so.. (so i dont know if it can be re-produced, or with an ability to adjust width, height, and the 4 directional offsets like on a TV) If it is possible that would fix the fullscreen issue however (by reverting back when a fullscreen app is detected or on hotkey)

Also a friend was wondering about identifying specific monitors, so they can add per-monitor settings to their program (got any articles/info i could pass along? since your program seems to do this fine )

windows 7 doesnt, but any chance windows 8 does? it does seem to have more multi monitor functionality so maybe , although im sure he would want atleast windows 7 support to include such a feature

Im curious how much time it would take to 'port' snippets of your code into his program to mirror your functionality (assuming you were open to such a thing) to make monitor identification work (i've not actually mentioned contacting you about it yet, and thats one of the reasons im being so vague) All i can say is the program does not directly compete with you, and would likely enhance the experience of users using both softwares

thats ok, thanks for the response