Can you explain this strange phenomenon with my network connections when GuiXT is on? If I go in and out of VA03 to view sales orders, my network connections to SAP increase. In the netstat command output I see lots of "TIME_WAIT" entries.

This is not an error. GuiXT uses the SAP RFC, which in turn  uses the TCP/IP protocol. When the RFC connection is closed, the underlying TCP/IP connection is not closed immediately with it. Instead, it goes into the state "TIME_WAIT", typically for around 2 minutes, probably in order to wait for some unusual response in which case the data package would need to be sent again. The TCP port is temporarily blocked, so a new TCP connection will use a new port number which you can see with netstat. There are enough port numbers available, so this causes no problems. If you wait a couple of minutes, and then do the netstat again, no TIME_WAIT connections will be there, and the ports are available for new connections.