see thread 
http://ubuntuforums.org/showthread.php?t=487737&highlight=xfce+vnc
specifying
-extension XFIXES
works for me, but this is a hack.  Somebody fix this for real please!!  

XFCE is ideal for use with VNC, and works well on CentOS and Fedora.
It's quite annoying to be so flaky on (x)ubuntu.

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xfce4-session doesn't work under vnc
https://bugs.launchpad.net/bugs/78887
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