How is it that even though this vulnerability has been known now for some time, Red Hat still has not issued a new package or security update that addresses this? On RHN, the most recent package I can find is 4.0.0 beta and the most recent security patch for VNC dates back to December 2004. Since Red Hat started distributing the package, why has it not been kept up with?
Probably because customers are not bugging them to much for it? I've never used vnc-server on Linux or seen it used to be honest, and although it is a nasty problem it's easy to deal with (just firewall it to trusted systems or wrap a VPN around it). They are obviously aware of this issue (it was fixed in Fedora Core 5, reported by Mark J. Cox).
https://bugzilla.redhat.com/bugzilla/show_bug.cgi?id=191692-Kurt