Running iOS beta on iPhone 4.
With 2.4, I always had problems trying to set this up. App would close if everything was not just right, and reopening and retrying connection it would always close. Had to go into process list, kill the app, and then try again. Once everything was set up correctly, then I could connect and disconnect as many times as I wanted. So there is some sort of bug cleaning up an unsuccessful connection at least to VNC. This appears to carry over to version 3.
With version 3, I successfully set up SSH with no issues. Then tried to set up VNC. Machine I'm initially trying to connect to SL 10.6 machine, but I've also tried a Lion machine (both of which work on 2.4). With VNC over SSH, the SSH connection happens just fine, then when it tries the VNC, I get "Disconnected. Lost connection to RemoterFusion. Do you want to reconnect?". I'm not using RemoterFusion, and it is turned off. I even cycled the option in the setup. If I hit no here, it goes back to the selection pane. Clicking start to try again closes the app. Opening the app and pressing start closes the app. Killing the app in the process list, opening the app, and pressing start gives me the disconnected... error. Rinse, lather, repeat.
Hopefully that is enough to troubleshoot.
charlie