You just described the process and I can say that it has done that already. I would click the boot from Disk OS and get the Apple icon and gear and then they would fade out and sometime later maybe 10 ro 20 minutes the computer would turn black and restart. I guess I was exception something else like a note say hey dummy we did it, were done so stop bothering us!" Now it does not always complete the process so that may be of concern.
So does this process of booting from the disk then fix any corruptions in the OS on the HD? If the boot to the disk OS did work and the computer still does not work correctly without the external monitor do you think completely starting from scratch will change anything?
Note: This post was edited by a forum moderator to correct a misleading typo on 04/10/2012 at 12:41 PM PT