Found the answer which is not a good one!!! I wonder if there is a fix for TightVNC that Lansweeper utilizes???
Services (like VNC) can interact only with session 0. Normally console is attached to session 0, but during or after an MSTSC session, session 0 might not be attached to session 0 and is therefore not available to VNC. Please try to connect to your XP using RDP and run QWINSTA.EXE from an MSDOS window. If "console" and "session 0" is NOT on the same line, then VNC cannot serve you the console. On my XP system, console is attached to session number 2 during RDP connection and unavailable to VNC.
Okay, now for the simple answer to your problem... have you rebooted the target machines to see if that will clear up your blank screen? There is a known issue that TightVNC will get a blank screen if an RDP session has been initiated prior to the VNC session. While there may be a way to clear the video block, rebooting might do the trick. Again this issue is caused by VNC emulating a local login, while RDP's behavior is to black out the screen while someone is logged in remotely.
Sure enough after I reboot the XP machine, LSRemote works because console is assigned to Session ID 0. But as soon as I remote desktop into the XP machine, it breaks again. It switches the console from Session ID 0 to ID 3.
As for Vista, LSRemote won't work at all with them since console is never assigned Session ID 0.
Any plan to fix this???