With MSRC4 118, everything works as expected. However, when 118RC2 is used, the server aborts the connection (according to logs ... available from link at bottom). The client receives a window ...

This error is presented with MS Logon and regular authentication. This happens whether the server is run as service or app as well. Also, with server on one of the 2000 clients, and connecting from XP, the same error is presented. Disabling WPA encryption on the wireless doesn't change results either.
Server and clients are using the same version of UltraVNC (1.0), same version of MSRC4 plugin (118RC2) NoReg, and same key in rc4.key file.
Logs:
http://home.mchsi.com/~mhicaoidh/misc/logs.zip