I'm also facing the same issue since I have upgraded to Jaunty
Jackalope. Even if I select the old NVidia Driver (version 96) the VNC
client screen doesn't update eigther. VNC only works propperly after
disabling visual effects.

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Compiz / vnc screen refresh with nvidia-restricted driver/VirtualBox/ATI fglrx 
driver
https://bugs.launchpad.net/bugs/353126
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