>As far as i know it is set up in VNC properties. On the W2K machine Right
>Click on the VNC icon in tray and set the password... should be that easy..

Actually I had this problem today and I was about to ask about it myself.

I narrowed it down a little.

I get the error that I need to set a password IF there is no user logged 
in. If there is a user logged in or the workstation has been locked. Then 
the password I set works fine.

This is with the latest release of VNC (3.3.3r9).

Any ideas?

Matt
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