Output 1 [Primary], Output 2 [Extended], Output 3 [Duplicate of 1]
Output 1: Monitor used for Games [Samsung 23' @ 120hz]
Output 2: Monitor used as extended desktop for browsing, IRC, etc etc [iiyama 22' @ 60hz]
Output 3: To be run into my AverMedia Live Gamer HD
That's your problem right there. You can't duplicate a 60hz with a 120hz panel, you'd have to take the lower value. I had to look it over for a minute, but almost 100% that'd be your problem. You could probably however just have the 3rd monitor as another extend and be good.
How do I set independent refresh rates for clone mode display?
If you are using multiple display devices and want to set an independent refresh rate for the secondary display device, you must enter the display properties, set your desired refresh rate, followed by disabling clone mode and then re-enabling clone mode.
Ok did some playing about with my cable setups and god knows what else. I finally managed to get it working.... sort of.
The MediaCard (Output 3) and Monitor 1  (Output 1) are now duplicated while Monitor 2 (Output 2) is in extended mode.
Only issue i am getting is that i can only have a 100hz on each one. Not the 120 i was hoping for and now im getting a HCDP issue when trying to record using the media card. I swear this is gonna give me a heart attack at this rate!