Greeting Guru. Thanks for all the help. I just get a blue screen at the vnc client. I am able to connect to the vncserver I start vnc as root
service vncserver start and it listens on 5902. Its an amazon EC2 AMI

[root]# cat /etc/*release
LSB_VERSION=base-4.0-amd64:base-4.0-noarch:core-4.0-amd64:core-4.0-noarch:graphics-4.0-amd64:graphics-4.0-noarchrinting-4.0-amd64rinting-4.0-noarch
Red Hat Enterprise Linux Server release 6.4 (Santiago)
Red Hat Enterprise Linux Server release 6.4 (Santiago)


Below is my xstartup under /home/<user>/.vnc

#!/bin/sh
(while true;do xterm;done) &
[ -r /etc/sysconfig/i18n ] && . /etc/sysconfig/i18n
export LANG
export SYSFONT
vncconfig -iconic &
unset SESSION_MANAGER
unset DBUS_SESSION_BUS_ADDRESS
OS=`uname -s`
if [ $OS = 'Linux' ]; then
case "$WINDOWMANAGER" in
*gnome*)
if [ -e /etc/SuSE-release ]; then
PATH=$PATH:/opt/gnome/bin
export PATH
fi
;;
esac
fi
if [ -x /etc/X11/xinit/xinitrc ]; then
exec /etc/X11/xinit/xinitrc
fi
if [ -f /etc/X11/xinit/xinitrc ]; then
exec sh /etc/X11/xinit/xinitrc
fi
[ -r $HOME/.Xresources ] && xrdb $HOME/.Xresources
xsetroot -solid grey
xterm -geometry 80x24+10+10 -ls -title "$VNCDESKTOP Desktop" &
twm &
#startx &
#exec gnome-session
#startkde