it's actually fine. I mean other than the funky background, what's ur other concerns here?
What do you want to do with vnc? Linux desktop always sucks...
my servers are in 5 miles range. But I can still see this shit occasionally. That has been said, it usually should get better looking if you are patient...
is it CentOS 6?
the third possibility: I just saw the scroolbar, your remote desktop has a resolution higher than your current window.
you may want to reconfigure vncserver by using vncserver -geometry 1080X800. Note: it's a X, not *
two possibilities:
1. your network is slow and take time to refresh;
2. you logout already and this is showing u the screen after logout. If so, vncserver -kill :vncno and restart it from command line.