I think the problem is the log entry that is generating:
INFO server comment - onConnect: false
Try edit the Application.xml file for this application and make sure the only modules defined for this application are:
<Modules>
<Module>
<Name>base</Name>
<Description>Base</Description>
<Class>com.wowza.wms.module.ModuleCore</Class>
</Module>
<Module>
<Name>properties</Name>
<Description>Properties</Description>
<Class>com.wowza.wms.module.ModuleProperties</Class>
</Module>
<Module>
<Name>logging</Name>
<Description>Client Logging</Description>
<Class>com.wowza.wms.module.ModuleClientLogging</Class>
</Module>
<Module>
<Name>test</Name>
<Description>test</Description>
<Class>com.wowza.wms.plugin.test.module.ModuleInternalTest</Class>
</Module>
</Modules>
The way the module stuff works is that it will call the event handlers in the order in which the modules are defined in the Application.xml. So maybe there is another module that is calling acceptConnection after the rejectConnection.
I realize that I keep hammering you with the same answer that it works. I am pretty confident that it works. I apologize. I am not sure what else to do. I do believe it is something on your end. So do send me your [install-dir]/conf folder zipped up along with your Java code so I can take a look. Send it to charlie@wowza.com.
Charlie