Looks like this is the same issue that screws up Apple's built-in VNC
client - symptoms are the same: machine is visible through Bonjour, I
can connect, the mouse pointer moves, but screen doesn't get updated.
Super frustrating.

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Compiz / vnc screen refresh with nvidia-restricted driver/VirtualBox/ATI fglrx 
driver using X.org prior to release 7.5
https://bugs.launchpad.net/bugs/353126
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