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

Please note that server passwords are currently stored in plaintext in the preferences file and shown unprotected on screen. This will be fixed as soon as the client is mostly functional. Right now, functionality takes precedence over local security.

Changes:

Vnsea now has very basic mouse control. Scrolling is now done with two fingers, while a single finger controls the mouse.
Support for all encoding formats supported by CotVNC, including JPEG.
You can control the desired pixel depth from the server settings to cut down on bandwidth.
Better error reporting (i.e. no crash) if a connection cannot be made.
Shimmer is included so future updates can be performed automatically.

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