In brief, when everything works as advertised, you install tightvnc on two machines.
Then, you run "vncserver" on the server machine. It will ask you for a password that you need to enter twice, and it gives you the option of setting up a view only password. When up and running, it should announce "New 'X' desktop is your.host.name:1" (plus some more info about startup script and log files).
Now, from the client, you enter "vncviewer IP.ADD.RE.SS:1", where the last number corresponds with the one that the server announced, in this case "1".
If get an error about "could not start Xvnc process", obviously something is wrong. Try installing tightvnc again, using gslapt.
I wonder if there is some confusion about address routing. Within your local network, you need to go from the client (vista) directly to your server (192.168.1.whatever), not via your router (192.168.1.1). IP forwarding via the router happens from the outside (your public IP) to the inside. It will not forward between machines on the inside.
There is more to IP forwarding and ports than this, but first get it working on the local network, then come back for some stern warnings about network security