What I was doing previously was connecting Netweaver through "sapadm" account and then logged on to another account after closing it (logging off "sapadm"). There must be netweaver running for GUI.... Right! 
I solved the issue (mostly) by keep running NSP and probably after installing Server 2008 on VMware I am not getting any of the two errors.
This is for future reference for the folks who do not have IT background.
Sincerely