I have a very similar problem. It occurs at the authentication stage.
Here it is:
1. go to Applications, Internet, Remote Desktop (vncviewer)
2. I am able to enter the IP or computer name,
3. then it does connect and I get the authentication window prompt
4. the username/passwd prompt (as usual
Two things:
A. by "remote desktop" above in #1 I meant "terminal server client"
B. If I invoke vncviewer from a terminal I can reproduce exactly the problem J
Wood describes.
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Default vnc viewer will not allow direct data entry with Compiz enabled.
https://bugs.launchpad.net/bugs/156827
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