I have a RHEL 6.4 box and I am running "tigervnc-server" on the box to enable remote gui access for different users. I have the users created locally and have created separate displays for them in the file, as well as vncpasswds in their home directories. Now I'm thinking about moving the users to openldap and configuring sssd to authenticate via ldap with the home directories to a nfs share. So with ldap authentication in place, am I supposed to separately create displays and vncpasswd in the home directory for every new users added to the ldap database ? Is there some way to automatically create a display for a new user who logs in and have the vncserver authenticate against the ldap directory ? Do I need a different vnc server ? Any help will be appreciated. Thanks is advance.

Ldap is just going to handle password replication across multiple servers, it doesn't have anything to do with VNC other than it assists in insuring your remote connection are secure.
If their passwords are encrypted and stored in the ldap database, it would be a very bad idea to keep a plain text copy of them in their home directories. You're probably going to need to set up your VNC server to accept ldap authentication
As far as creating individual displays, I'd suggest you make a template and apply it to new users