I have used the feature in the past without issues, it just seems once we pushed out SP1 to win 7 we started to see this issue.
The rebooting instead of logout doesn’t bother me, but the fact that it does not register activty does.
I put in a bug at:
[url]http://fogproject.org/forum/threads/auto-log-out-restarting-even-during-activity.1136/[/url]