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35a32c5
(Get the code!)
I have the same problem here. And I've been using Xvnc with xinet.d in this way under Feitsy and Gutsy, the speed is acceptable. But with Hardy b4, just try to vnc to localhost:1 will like viewing the desktop remotely through WAN. So I believe there should be something wrong here.
Hope the porformance issue could be fixed in the final release.