Question : whether it is possible to connect the 50 vnc users and work continuously and simultaneously?

whether it is possible to connect the 50 vnc users and work continuously and simultaneously in the gimp or Image Magic  kind of graphical application. In the hardware  two Quad core xeon based system, 10 GB RAM, 1Gbps network card & Operating system Linux enterprise server 5.2

Answer : whether it is possible to connect the 50 vnc users and work continuously and simultaneously?

You should set up 50 user accounts, all logged at the same time with X active, each one with a VNC server active. Then, they can start in their own session their own instance of GIMP and have a good time
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