>The non-free editions of VNC offer session encryption.

There is also ZVNC, which is free.  The downside of ZVNC is 
that it is PC only, and out of date with respect
to the current vnc sources.
        http://home.comcast.net/~davedyer/znc/zvnc.html

>Finally, how expensive is encryption (and decryption) in terms of CPU?

not very
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