Anthony Liguori is working on a VNC patch for QEMU with a possible future implementation in Xen:
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I have been developing a VNC patch for QEmu.
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night I got a chance to talk to Fabrice about this patch and he seemed to be happy with it. In fact, it looks like I’ve got a shot of getting it in for the next release. The code is quite ugly right now but hopefully I’ll have something that’s much cleaner by the end of the week. Then I can start looking at reusing it for Xen so I can finally get rid of the libvncserver dependency for the VFB.
Read the whole article at source.