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Works fine for terminal session but connection is lost as soon as one tries to start GNOME/KDE!!

Wow, still works perfectly after 7 years!!!! (with version 3.0, some more dependencies to solve but very easy, just do what the configure step tells you)
Installing and using GNOME instead of Unity...

I solved this problem by installing gnome ( sudo apt-get install gnome ), rebooting and choosing "GNOME Classic" from the drop down menu in the user login window.
But you will loose the Unity...

Same here!