It looks like the issue was that one has to use the EXACT version of Ubuntu / CentOS etc which is stated in the Ulteo support documents.
All my installations were done on Ubuntu 12.04, or on Centos 6.0.
I reinstalled the application servers on 10.04 - and in the last 2 days I had no issue any longer with 25 users (whereas before I had every half an hour a problem and I had to restart the application servers).
The errors seem related to CIFS but I could not say for sure.
So my conclusion is - these new versions ARE NOT SUPPORTED with Ulteo OVD out of the box.
You MUST use Ubuntu 10.0.4 (or CentOS 5.5) as stated in the installation support document.
Hope this helps anyone who had this issue.