Yes it does. Per ATI Radeon site for X300
http://ati.amd.com/products/radeonx300/specs.html
Additional Features
# Dual integrated display controllers
I am assuming you installed the ATI Catalyst Control Center
If not go here and download it
http://ati.amd.com/support/driver.html
Plug in a monitor in each port/
Right click on screen and select "ATI Catalyst Control Center"
Under "Graphics Settings" select and click on "Displays Manager"
Click on "detect Displays" or #2 Box and enable the #2 display.
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Two monitors are better than one
http://www.microsoft.com/athome/moredone/twomonitors.mspx
Expand Your Workspace with Multiple Monitors and Dualview
http://www.microsoft.com/windowsxp/using/setup/learnmore/multimonitor.mspx
Double/Triple Vision
http://www.mediachance.com/free/multimon.htm
Two Screens Are Better Than One
http://research.microsoft.com/displayArticle.aspx?id=433
Multi-Monitor Resources
http://realtimesoft.com/multimon/faq.asp
Setting up dual monitors using Windows XP Home
http://www.pcworld.idg.com.au/index.php/id;397764216;fp;2;fpid;1277378924
Dual monitor calibration on Windows XP PCs
http://www.northlight-images.co.uk/article_pages/dual_monitor_calibration.html
Turn on dual monitor support: Powerpoint
http://office.microsoft.com/en-us/powerpoint/HP030832971033.aspx
Video Editing & Your Monitor
http://www.microsoft.com/windowsxp/using/moviemaker/expert/dunn_03august11_monitors.mspx
Run a presentation on two monitors
http://office.microsoft.com/en-us/powerpoint/HP030893941033.aspx
Dual Monitor Video Cards
http://www.superwarehouse.com/Dual_Monitor_Video_Cards/c3/1884
VGA to DVI or a DVI to VGA adapter to attach your monitors.
http://www.tigerdirect.com/applications/SearchTools/search.asp?keywords=dvi+vga+adapter&image1.x=0&image1.y=0