Can Windows 7 place a task bar on each monitor, which only shows applications running on that screen?

I would like to have a task bar on each of my monitors, but I only want applications that are currently on that monitor to be displayed on its taskbar.

This can be accomplished using UltraMon. However, the taskbar shown on the secondary and tertiary monitors is not the native Windows 7 taskbar, but rather made to try to simulate how it looks and feels. As good as it is, it is missing a ton of the features I find to be the best about the taskbar, such as program grouping, "peeking" at applications and so forth.

Is there is a way to make Windows 7 actually display its native awesome taskbar on multiple monitors?

Nope. Not the native toolbar at least. Sorry mate, you are out of luck here. There's MonMan for Windows XP - send an email to the dev to see if you can encourage him to make it 7 compatible.

For Windows 7 I'm using DisplayFusion. I find it better than UltraMon.

It shows the thumbnail preview, but minimize to taskbar goes to the native taskbar on the primary display :(