I can't help with the DisplayOut problem. However, I can tell you: Don't do a restore on that iPad2! If you do a restore, you WILL end up on iOS 5.1 and you WILL lose the jail break! Just so's you know...
Earlier, you said you got a message telling you that you needed an iOS upgrade when you "plugged it in." plugged it in to what? The TV? If so, what app are you running when it says that?
Marilyn

