I have a similar setup as described in the original post, but simpler one: VNC 
over 1 Gb LAN, no SSH, vnc4server starts-up via xinetd. 
The visible symptoms are exactly the same as Jordan put it, nothing to add 
here, and it all started after 7.1 to 8.04 upgrade.
The problem affected both upgraded machines: one is a very old 800 MHz box with 
768 MB RAM, the other one is 2.4 GHz P4/1GB RAM.
Upgrading (today) the latter to 8.04.1 didn't help. 
.xsession-errors is attached, in case it's of any help.

Serguei

** Attachment added: ".xsession-errors"
   http://launchpadlibrarian.net/15972313/.xsession-errors

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Error starting gnome-settings-daemon while logged in via vnc
https://bugs.launchpad.net/bugs/239342
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