Windows VNC > Lion Connection Issue Workaround!
This may be known by now, but I have Googled my fingers off for two months looking for an answer to no avail.
Since about DP2 or DP3, connecting to Lion via VNC (From a Windows box, in my case) has stopped working. You get the log in screen, and then either have no input functionality, or you are able to enter your credentials and it disconnects. This is a known issue due to the new Lion VNC server ability to host multiple connections and the old VNC clients don't have the ability to deal with that yet.
The workaround:
On your Mac, log out, and then connect remotely via VNC. It works perfectly.
Keep in mind that if you do not log out of the Mac via the remote connection and instead simply disconnect, you will not be able to reconnect without first going to the Mac and manually logging out again. A small price to pay for what is otherwise the full VNC functionality.
Regards,
-t
Mac OS X (10.7)