Thanks to lukeman3000 from reddit for discovering this fix!
lukeman3000 says: "So I was having this problem getting demos to come up on my Rift. I've found that playing in extended mode seems to offer the most judder-free experience, but sometimes it's a pain trying to get games to come up on the Rift instead of my monitor. I think I may have finally got to the bottom of all this. Apparently, the Rift needs to be on the left side when setting up monitor position. To do this, click and drag the Rift monitor (yours might be on the right at first) and place it to the left of your normal monitor. Now, "Open on Oculus Rift" should work. At least, it does for me after making this change."
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