vncviewer allows mouse but not keystroke events

I have vnc-server-3.3.3r2-28 and vnc-3.3.3r2-28 installed on RedHat 7.3. When I run vncserver as :1 and attach to :1 with vncviewer my mouse events are received by an application I am running but my keystroke events are not being received. I have the same problem if I use tightvnc's vncserver and vncviewer. If I run RealVNC from Windoze I my mouse and keyboard events make it just fine to my applications. Any ideas on what is causing the loss of my keystroke events?

It turns out there's a twist on this problem. If I run vncviewer :1 in a window keystrokes are seen just fine. If I run vncviewer :1 with -fullscreen that's when keystrokes are ignored (mouse movement works fine). Just to be clear, in the above case the vncserver and vncviewer are running on the same RedHat 7.3 box.