Had exactly the same issue tryingto get Xvnc to work reliably.
Swicthing localhost for 127.0.0.1 in /etc/xinetd.d/vnc  fixed it.
uname -a::   Linux XXXXXXX.bazaarsystems.co.uk 2.6.31-22-generic-pae #61-Ubuntu 
SMP Wed Jul 28 03:15:32 UTC 2010 i686 GNU/Linux
Let me know if you need any further details

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gdm-simple-greeter fails to start
https://bugs.launchpad.net/bugs/476132
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