Hey all,
Just in case you haven't noticed (I hadn't until a couple of weeks ago). There is a real android X server on the play store (xserver-xsdl) by a developer called pelya. I have been using it for two weeks, it is rock solid (except when killed by android, but I think I have figured out how to keep it alive), it is fast, lightweight (certainly compared to VNC), highly configurable, basically does everything I want. It is open source, available on github.
Rahul