YAY!! Talked to the guy at SpySupply007 (very nice guy) and he said they've NEVER had an issue with the Xenarc monitors, nothing like this. So, maybe it was a weak screen.
SHOULD it work plugging it directly inline, or will it fry it everytime?
He is over-nighting me one, and i'll just send mine back (with the good cable, not my spliced one).
So, if anyone is interested in a Xenarc, I recommend SpySupply!
Thanks for the help guys, I can now sleep at night.