It would be helpful here if everyone posted what they're connecting to and from.
What Os is the client? What Os is the host? What version of the client software are you using.
Just to be clear - for the most part - apple to apple screen sharing works.
It's Windows VNC client to Apple we're discussing here.
And, at the moment, no Windows version of Tightvnc (2.5.2 released june 28th), RealVNC (5.0.1) or UltraVNC (10962) can connect successfully and reliably to an OSX machine using the native VNC host - not 10.7.1, .2, .3 or .4.
Yes, there might be prolems with the odd users Ipad or iphone vnc client, but there is absolutley NO client for windows that can connect successfully and reliably - not something that could be said of 10.6.8 - those same windows clients will connect fine to 10.6.8.
And this despite all the methods laid out here - colour changes, settings in vnc clients, blind password entry, removing autologon on the OSx, deleting accounts, reinstalling os and doing them all again - none of it has worked with our range of test macs. We've meticulously followed them all.
Using a vine server on the osx machine to replace the VNC server gave us access, but it's a workaround and a fiddly one at that (you have to restart the vine server rather than close the window or it locks you out).
At the end of the day it's either immediate window closure or the 'logon screen' freezing that you'll get from a Windows VNC client.
VNC server in 10.7 has been and remains broken. Not screen sharing - VNC.