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When having tao_idl suppress the generation of thru_poa stub code (-Sp) and generating direct collocation code (-Gd) the application code will crash when running with -ORBCollocationStrategy direct. The application will run okay if -Sp is not passed to the tao_idl compiler. This behavior can be seen for example by modifiying the Makefile in the GettingStarted/collocation example found in http://download.ociweb.com/examples_tar.gz to include TAO_IDLFLAGS = -Sp -Gd.
Duh! I wasn't passing -ORBCollocationStrategy direct to the server ORB_init, only to the client ORB_init.