I am seeing the same bug in Hardy when i connect to a secondary  viewport.
I have 2 monitors configured as 2 independent displays.
I am normally able to access them via vnc as hostname:0 and hostname:1 
alternatively hostname:5900 and hostname:5901

If I enable visual effects, the second view port no longer updates within VNC 
exactly as described in this bug.
If I disable visual effect, everything goes back to normal.

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No screen updates when using desktop-effects with vnc
https://bugs.launchpad.net/bugs/77442
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