Hey Guys, Based on your description of the problem, I'd now guess its a UltraVNC problem. We use UltraVNC exclusively for a while now and just accepted those blue circles and failed connects as a fact of life.
The only resolution was to use the remote Task Manager to end the crashed winvnc.exe task, and restart the VNC service. Even then, it didn't always work, I'd have to reboot the PC. On top of the random crashing UltraVNC service, I found that that the Video Driver can actually BSOD Windows after about 10 log off's and on's of users in a few minutes in the same VNC session.
So.. I think that since you said RealVNC works.. we might switch to that, or give TightVNC a try. Ultra VNC has those extra features, but its really buggy (blue circles and the crashing service), and makes those features not worth the trouble.
/me is off to install RealVNC onto the clients.
Thanks guys,
Bryan