RyaReisender: Are there actually people on the waiting queue to enter the Ferris Wheel? What happens to them? They just wait there forever?
DrPepperNaplam: There are two things I've seen happen, the first is that the peep at the head of the queue enters the entrance then seems to walk back out and start queuing again. The second thing is that it looks like the peep at the head just gets stuck before going through the entrance and the wheel holds to load them with the peeps behind them queuing forever not to mention the peeps already on the ride getting stuck.
I haven't seen anything like this in all these years. You can always manually reset the ride by closing it down and clicking the close option again to close the ride and let everyone out.
As for the guest going in an out, that usually happens if he is the only one in the queue and there's nobody to share the wheel's seat with (which you can solve by lowering the ride's price, as the ride lost popularity and needs a permanent discount).
However, this sort of bug may require some setting up. Do you run the game in compatibility mode for Windows XP SP3 and with visual themes/desktop composition disabled?