I was looking into similar problems with lost connections through Citrix. I could not find any answers about what this setting does so I contacted JDEdwards. Here is the reply I got from the JDE support person:
"Josh,
This is Darton with PeopleSoft in Denver, I am working with your case #5918721. You were asking about the Nettrace setting in the INI file. Please see the information below:
Nettrace is used as a logging tool:
A way to follow the path through the network is to turn on netTrace in the ini file for the Terminal Server (under JDENET, set netTrace=1). This will
generate a file that you will give timestamps at each of the network connections so that you can see where the delays are occurring.
[JDENET] netTrace=1
Possible values:
0 = Do not generate JDENet error messages (i.e., communication between platforms).
1 = Generate JDENet error messages.
Please let me know if this is the information that you are looking for."
I was disappointed with this answer because of all the people who claim it really helps with performance on their windows 2k platforms. But I got another email from him shortly thereafter.
"Josh,
Here is one more bit of information:
[JDENET]
netTrace=1
By setting this to "1" it causes different API's to get used that work faster with WIN 2000.
Darton"
Hope this helps! I've asked for more detailed information regarding the API's and any adverse effects that could result from changing this setting. I'll keep you all posted!