SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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                                  SCHEDULE 13G
                                 (RULE 13D-102)

             INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
           TO RULES 13D-1(B) (C) AND (D) AND AMENDMENTS THERETO FILED
                            PURSUANT TO RULE 13D-2(B)
                               (AMENDMENT NO. __)*

                               NEON Systems, Inc.
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                                (Name of Issuer)

                          Common Stock, $.01 par value
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                         (Title of Class of Securities)

                                    640509105
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                                 (CUSIP Number)

                               September 15, 2005
                    ----------------------------------------
                          (Date of Event which Requires
                            Filing of this Statement)

        Check the appropriate box to designate the rule pursuant to which
                            this Schedule is filed:

                                [ ] Rule 13d-1(b)
                                [X] Rule 13d-1(c)
                                [ ] Rule 13d-1(d)

                                   Page 1 of 5

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*    The remainder of this cover page shall be filled out for a reporting
     person's initial filing on this form with respect to the subject class of
     securities, and for any subsequent amendment containing information which
     would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).






                                  SCHEDULE 13G

CUSIP NO.    640509105                                         PAGE 2 OF 5 PAGES
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  1    NAME OF REPORTING PERSON
       S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
       Lloyd I. Miller, III                      279-42-7925

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  2    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*               (A)   [ ]
                                                                       (B)   [ ]

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  3    SEC USE ONLY

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  4    CITIZENSHIP OR PLACE OF ORGANIZATION
       United States

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                        5   SOLE VOTING POWER         
                                                      
      NUMBER OF             218,741                   
       SHARES           --------------------------------------------------------
    BENEFICIALLY        6   SHARED VOTING POWER       
      OWNED BY                                        
        EACH                277,516                   
      REPORTING         --------------------------------------------------------
       PERSON           7   SOLE DISPOSITIVE POWER    
        WITH                                          
                            218,741                   
                        --------------------------------------------------------
                        8   SHARED DISPOSITIVE POWER  
                                                      
                            277,516                   
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  9    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

       496,257

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  10   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* [ ]

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  11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

       5.2%

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  12   TYPE OF REPORTING PERSON

       IN-IA-OO**

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                      *SEE INSTRUCTIONS BEFORE FILLING OUT!


**   See Item 4.






                                                                                                
Item 1(a).  Name of Issuer:                                                NEON Systems, Inc.

Item 1(b).  Address of Issuers's Principal Executive Offices:              14100 Southwest Freeway, Suite 500
                                                                           Sugar Land, Texas 77478

Item 2(a).  Name of Person Filing:                                         Lloyd I. Miller, III

Item 2(b).  Address of Principal Business Office or, if None, Residence:   4550 Gordon Drive, Naples, Florida
                                                                           34102

Item 2(c).  Citizenship:                                                   U.S.A.

Item 2(d).  Title of Class of Securities:                                  Common Stock

Item 2(e).  CUSIP Number:                                                  640509105



Item 3.     IF THIS STATEMENT IS FILED PURSUANT TO RULE 13d-1(b) OR 13d-2(b) or
            (c), CHECK WHETHER THE PERSON FILING IS A:

            Not Applicable, this statement is filed pursuant to 13d-1(c)

Item 4.     OWNERSHIP: The reporting person has sole voting and dispositive
            power with respect to 218,741 of the reported securities as the
            manager of a limited liability company that is the general partner
            of a certain limited partnership. The reporting person has shared
            voting and dispositive power with respect to 277,516 of the reported
            securities as an investment advisor to the trustee of a certain
            family trust.

            (a)496,257

            (b)5.2%

            (c) (i) sole voting power: 218,741

                (ii) shared voting power: 277,516

                (iii) sole dispositive power: 218,741

                (iv) shared dispositive power: 277,516

Item 5.     OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS:

            Not Applicable

Item 6.     OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON:

            Persons other than Lloyd I. Miller III, have the right to receive or
            the power to direct the receipt of dividends from, or the proceeds
            from the sale of, the reported securities.

Item 7.     IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED
            THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY:

            Not Applicable



Item 8.     IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP:

            Not Applicable

Item 9.     NOTICE OF DISSOLUTION OF GROUP:

            Not Applicable

Item 10.    CERTIFICATION:

            By signing below I certify that, to the best of my knowledge and
            belief, the securities referred to above were not acquired and are
            not held for the purpose of or with the effect of changing or
            influencing the control of the issuer of the securities and were not
            acquired and are not held in connection with or as a participant in
            any transaction having that purpose or effect.








                                    SIGNATURE


      After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.









      Dated:  September 26, 2005          /s/ Lloyd I. Miller, III              
                                          --------------------------------------
                                          Lloyd I. Miller, III