I have a installation with exact the same problem, upgraded the 4400 controller to firmware version 188.8.131.52 - but that made no difference. The log from the switch that the lwapps is connected to shows no indication of link up/down events. So any news on this problem?
I was having the same issue when we first installed our 4404-100. I attributed this issue to be my port channel configuration using LAG in the WLC. I also upgraded the WLC with no change in this issue. My network continued to function properly but I could not use the GUI to manage the network. Here is the configuration I am using on a Cisco 6509. Hope this helps.