VNsea is a graphical VNC client for both the iPhone and 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:

Bug fixes and small improvements to the features added in version 0.5.
The screen will automatically scroll now if you drag to the edge of the display and hold it.
The last time a server was connected to is now shown in the list of servers.
Issue 38 Screen doesn’t scroll while dragging the remote mouse
Issue 78 Transition to remote screen not smooth..
Issue 79 Mouse Tracks were staying around when going back to server list
Issue 84 Mouse tracks do not follow scrolling
Issue 85 Mouse tracks disappear too abruptly
Issue 91 Last connect time in Server List

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