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I screenshare with my friend everyday. It was working well until he updated to Mountain Lion. Now there is a significant delay regardless of network activity. Is there anyway to fix this?

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This may be unrelated. There was a recent update for the Apple Remote Desktop Client. Have you installed that update? Has your friend? –  ephsmith Aug 3 '12 at 22:27
    
Yes, we both installed all latest updates –  Doug Aug 3 '12 at 23:33

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