There's a release candidate for Vista, and it works great on my computers.
Also, the Windows 98 version works in Vista
. Apparently Vista breaks a lot of XP compatibility because Vista handles services differently. The Win98 version works because it's not a service.
Article explaining vista services
The problems [with services] are caused by Windows Vista new security feature called Session 0 Isolation. Previous versions of Windows ran system services in the same login session as the locally logged-in user (Session 0). In Windows Vista, Session 0 is now reserved for these services, and all interactive logins are done in other sessions, causing VNC server unable to accept incoming remote control connection request.
So in order to make VNC server on Windows Vista works properly, the workaround resolution (at least until the VNC developers to come out with proper fix or update to address the new security constraint in Windows Vista) is to run VNC server in user mode.