Setting a higher aggression didn't really help and it only increases the display lag.
phoenix.exe -k poclbm PLATFORM=0 WORKSIZE=128 AGGRESSION=9 -q 2 -u
http://username:password@pool.abcpool.co:8332 -v
[21/01/2012 05:01:04] Phoenix v1.7.3 starting...
[21/01/2012 05:01:04] Connected to server
[21/01/2012 05:01:04] Server gave new work; passing to WorkQueue
[21/01/2012 05:01:04] New block (WorkQueue)
[21/01/2012 05:01:05] Server gave new work; passing to WorkQueue
[21/01/2012 05:01:05] Server gave new work; passing to WorkQueue
[21/01/2012 05:01:48] Result 0000000071a88bbd... accepted
[21/01/2012 05:01:48] LP: New work pushed
[21/01/2012 05:01:48] Server gave new work; passing to WorkQueue
[21/01/2012 05:01:48] New block (WorkQueue)
[21/01/2012 05:01:49] Server gave new work; passing to WorkQueue
[21/01/2012 05:01:49] Server gave new work; passing to WorkQueue
[21/01/2012 05:01:53] Result 0000000088833ce5... accepted
[21/01/2012 05:03:45] Disconnected from server
[21/01/2012 05:04:00] Connected to server
[21/01/2012 05:04:00] Server gave new work; passing to WorkQueue
[21/01/2012 05:04:25]
Reject reason: unknown-work[21/01/2012 05:04:25] Result 000000009279df6e... rejected
[21/01/2012 05:05:43] Disconnected from server
[21/01/2012 05:05:58] Connected to server
[21/01/2012 05:05:58] Server gave new work; passing to WorkQueue
[21/01/2012 05:07:40] Disconnected from server
[21/01/2012 05:07:55] Connected to server
[21/01/2012 05:07:55] Server gave new work; passing to WorkQueue
[21/01/2012 05:08:25]
Reject reason: unknown-work[21/01/2012 05:08:25] Result 0000000017168aae... rejected
[21/01/2012 05:09:37] Disconnected from server
[21/01/2012 05:09:53] Connected to server
[21/01/2012 05:09:53] Server gave new work; passing to WorkQueue
[21/01/2012 05:10:01] LP: New work pushed
[21/01/2012 05:10:01] Server gave new work; passing to WorkQueue
[21/01/2012 05:10:01] New block (WorkQueue)
[21/01/2012 05:10:01] Server gave new work; passing to WorkQueue
[21/01/2012 05:10:02] Server gave new work; passing to WorkQueue
[21/01/2012 05:11:58] Disconnected from server
[21/01/2012 05:12:13] Connected to server
[21/01/2012 05:12:13] Server gave new work; passing to WorkQueue
[21/01/2012 05:12:37]
Reject reason: unknown-work[21/01/2012 05:12:37] Result 00000000a78bd24e... rejected
[21/01/2012 05:12:53] LP: New work pushed
[21/01/2012 05:12:53] Server gave new work; passing to WorkQueue
[21/01/2012 05:12:53] New block (WorkQueue)
[21/01/2012 05:12:53] Server gave new work; passing to WorkQueue
[21/01/2012 05:12:53] Server gave new work; passing to WorkQueue
[36.60 Mhash/sec] [2 Accepted] [3 Rejected] [RPC (+LP)]
I'm referring to from my original post. The problem is mentioned by phoenix author himself.