looks like to me your your monitor can't sync that high. I am not near my miggy right now (will look later) but its around 58ish/32ish for 800x600. try copying 2.0, the copy 2.e then copy 2.s over in that order. don't touch the p96 prefs at all. that happened to me and thats what i did and fixed it. hope that helps.
edit: also in monitors for the mouse in the info - softwaresprites=Yes if you have no mouse after the screen switching.
also i added this in my startup-sequence - libs: picasso96/indi.card
lost