Same for me, password changing in $ vino-passwd works, in $ vino-preferences it 
does not. 
I'd like to add the following interesting feature: After changing the password 
in vino-passwd, the change is not reflected in the gnome configuration:

$ gconftool-2 -a /desktop/gnome/remote_access
 prompt_enabled = false
 authentication_methods = [vnc]
 vnc_password = bXVo <-- does not change
 enabled = true

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https://bugs.launchpad.net/bugs/879496

Title:
  Vino vnc connection refused post Ubuntu 11.10 upgrade

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