I hope you can see what the problem is!

I was running 1.2.0.1 and have installed 1.2.1.0 in a different location. Colour settings does not seem to matter, but have choosen LAN (hextile, full colours).
The thing is the 1.2.0.1 viewer now has the same problem.

And after connecting with 1.2.1.0 the session fails immediately after entering the password.
I'm going to try uninstalling the newer version, to see if the colours get better.
Anybody have some troubleshooting tips?
BTW, I'm on Windows XP x64.