Because your laptop can only support one 'overlay'. Meaning you can see video on the LCD OR the monitor. On some laptops, you can have the video on the Monitor and TV output, but not the lcd (when all are connected)
If you have an ATI chipset, go into the display properties > Settings > Advanced, and then the display tab, you should have the option to set the LCD or Monitor as 'Primary', that dictates where the video overlay will show.



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