PCAnywhere 11.0 and W200 Pro SP4

I have a W2000 Pro SP4 machine as a PCAnywhere host and a WXP Pro SP2 computer as remote, both with PCAnywhere 11.0.
When I try to sign on from the remote, I get through the first screen just fine. But when the host desktop pops up, it’s just blue. And I can see a tiny white space where I can “blindly” enter my password, but all that happens is the screen flashes momentarily and goes back to just blue.
I already tried turing on pcanywhere encryption on both mahcines, no luck. Is this soemthign to do with SP4? It worked fine before I updated.