Video works fine when I put it in legacy video mode.  My graphics card is pretty old (Radeon HD 4600) so maybe this is the problem?
Just wanted to put it out there in case it's a general bug.  Also, in case anyone has any suggestions for software updates that may resolve the issue.

Thanks in advance.

I'm having no trouble using 3 monitors.  I have only been using AVI's. I tried a Mpeg2 and had some freezing issues that might be related to other things.

Dual monitors working fine here in X3d and all previous X's.......

Have you tried getting the newest drivers for your video card? My video card is fairly old as well, but I'm able to run dual monitors.

Confirmed as working I have dual monitor setup.

4 monitors and working.

3 monitors and working well with X3d.  As stated above, check for new drivers for your card first.

Ok, thanks everyone for chiming in. 
 
I said video wasn't working on the second monitor but I should clarify.  What I meant was the video module.  Sonar X3d works just fine with a second screen... the only thing is video is now choppy or doesn't play at all (primary screen is fine).
 
I'm just going to assume it's my video card (which is updated) and get a new video card.