External monitor on T60

Source Lenovo Support - Troubleshooting video display issues - ThinkPad

1. See the External monitor (Flat-Panel and CRT) troubleshooting solutions guide for more information.
   Note: Using a resolution lower than the native resolution on flat panel monitors will cause distortion, loss of detail, and general blurriness.
2. See the Enabling TV-Out guide for using a TV or projector with the S-Video connection if available.
3. Connect a known good external monitor and press the Fn and F7 keys simultaneously to change the display mode.
   Notes:
   
   • The Presentation Director menu window may interfere with the functionality of the Fn and F7 keystroke.
   • There are generally three display mode settings to toggle through (LCD, CRT, and both).
   • Some ThinkPad models only support two display modes. CRT only or LCD only.
   
   
4. Verify the cabling and connections between the external CRT monitor and the ThinkPad system external monitor port.
   
5. Remove any signal cable extensions and switch boxes.
   Note: Signal cable extensions and switch boxes are not supported.
6. Ensure the external display is setup and configured according to the instructions provided by the manufacturer.
7. Verify the external display passes any applicable self tests according to the instructions provided by the manufacturer.
8. Verify the display settings are supported by the ThinkPad video chipset and the external display.
   Note: See the Unsatisfactory video section for more information.
9. Verify the external display works on another system if available.
10. If these steps have not solved your pr

well it seems this

The Presentation Director menu window may interfere with the functionality of the Fn and F7 keystroke.

Application is what's interfering with it functioning normally.
If it's unused you could remove that app and normal functionality would likely return.