Yeah, thats a lot of connections to the server...!!!! Its weird that its the Kernel32.dll....???? We use the Oracle client with no problems but with about max. 40 connections per server (on Metaframe)....
Might be worth checking the following registry key which "controls" the ammount of connections to the server....
HKLM\system\currentcontrolset\services\lanmanserverparameters\MAXMPXCT
Its a reg_dword value in case you have to add it......
Also in the same key is another value.....
MAXWORKITEMS........(range for both keys is 1 - 65,535)
U could try increasing these values...???? We've had problems with these parameters in the past, but I'm not too sure if we were seeing the Kernel32 error...but again this could be caused by not enough server resourses being allocated for the client...?????
One other thought...!!! What permissions are set for kernel32.dll..???? Do all your "new" connections have sufficient permisssions to access it...????...or is it set for the Oracle client...????
Hope this helps............