VNsea is a graphical VNC client for the iPhone and presumably the iPod touch, based on Chicken of the VNC for Mac OS X.

Version 0.3 is now available. This release focuses on interface issues related to opening a connection.

Changes:

If it takes more than a moment to open a connection, an message appears saying “Connecting to server”.
Connecting is done in the background so the UI isn’t frozen.
Error messages are much better, describing the actual reason for a connection failure.
Shimmer update checking is done in the background, to prevent the UI from becoming locked up if the update server cannot be reached for some reason.
Major refactoring of the connection related code.
Fixes for issues 1 and 20.

http://code.google.com/p/vnsea/