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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:

http://www.webhostingtalk.com/showthread.php?t=1029327

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:

enter image description here

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.

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