I managed to get it working following this howto:

First off, the window manager you see (tweed) is the twm window manager.
There is no mouse support, because this window manager isn't fully installed
on your system. Specifically, the menu package is not installed. If you
start aptitude or synaptic and properly install twm, you would have a
working system. But what you really want is GNOME, right?

Well to get that you need to get vncserver operating with the correct config
files. The HOWTO steps don't cover creating a xstartup config file for VNC
to use that will allow you to choose your window manager (you're getting twm
just by pure default). The easiest way to do this is as follows (cut from my
personal TWIKI, so forgive the format hack job):

* Installation with aptitiude

root@heckmedia:~# aptitude install vnc4server xinetd

* First as root, we want to first establish configuration files in the
/root/.vnc directory. This requires creating a VNC password.

root@heckmedia:~# vncpasswd
Password:
Verify:

* Next, invoke the vncserver to cause the rest of the configuration files to
be created. Immediately kill the server, since we won't be using it (instead
xinetd will start the vncserver on demand when we try to VNC in).

root@heckmedia:~# vncserver

New 'heckmedia:1 (root)' desktop is heckmedia:1

Creating default startup script /root/.vnc/xstartup
Starting applications specified in /root/.vnc/xstartup
Log file is /root/.vnc/heckmedia:1.log

root@heckmedia:~# vncserver -kill :1
Killing Xvnc process ID 12108

* Now change the session window manager in the /root/.vnc/xstartup file from
'twm' to 'gnome-session'

root@heckmedia:~# cd .vnc/
root@heckmedia:~/.vnc <root@heckmedia:%7E/.vnc># ls
heckmedia:1.log passwd xstartup
root@heckmedia:~/.vnc <root@heckmedia:%7E/.vnc># emacs xstartup
root@heckmedia:~/.vnc <root@heckmedia:%7E/.vnc># diff xstartup xstartup~
12c12
< gnome-session &
---
> twm &

* Next we need some configuration to start Xvnc as a service under xinetd.
Create the file /etc/xinetd.d/Xvnc using cat and input redirection. Close
the input stream with a Control-D.

root@heckmedia:~/.vnc <root@heckmedia:%7E/.vnc># cd /etc/xinetd.d/
root@heckmedia:/etc/xinetd.d# cat > Xvnc
service Xvnc
{
type = UNLISTED
disable = no
socket_type = stream
protocol = tcp
wait = yes
user = root
server = /usr/bin/Xvnc
server_args = -inetd :1 -query localhost -geometry 1280x1024 -depth 24 -once
-DisconnectClients=0 -NeverShared passwordFile=/root/.vnc/passwd -extension
XFIXES
port = 5901
}

* Now stop and restart the xinetd daemon, killing any Xvnc processes in
between.

root@heckmedia:/etc/xinetd.d# /etc/init.d/xinetd stop
Stopping internet superserver: xinetd.
root@heckmedia:/etc/xinetd.d# killall Xvnc
root@heckmedia:/etc/xinetd.d# /etc/init.d/xinetd start
Starting internet superserver: xinetd.

* A reboot seems necessary at this point. I have not been successful using
VNC the first time without it.

* Finally try to login from a remote computer to IP Address:1 using a VNC
client.
* It is also possible to test using vncviewer to localhost:1
* Sessions will not end when you close the VNC client unless you log out!

That should just about do it. You should now be able to remotely login.

Good luck,

h_h