I just got a linus VPS after like 6-7 months. I installed a clean copy of 11.10, and then used this tutorial to install ubuntu-desktop and get a VNC connection going:
Note that I've installed 11.10 dozens of times previously, and everytime this guide did the trick !
Now however, when I follow the exact same procedure, when I actually open a VNC connection, here's the screen I see:
I tried reinstalling the latest 12.10, and the result was the same on that, with the only difference that instead of a blue screen, there's that normal ubuntu wallpaper.
When I followed this tutorial now, after 6-7 months, the only difference I noticed is that when I execute
sudo apt-get install gdm, I get a Terminal menu asking me which Session Manager to use. I never got this screen below. I tried selecting
GDM here (the other option was
lightDM. When GDM gave me this screen, I tried switching to
lightDM, but the result was the same.