Hi all, I've got an update here myself and it seems like teamviewer 10 is the issue and not vps2day (surprise surprise!).
When reconnecting, the quality rate always switches to default (which is bad). If you turn on custom settings for quality and maximise speed/turn down colours, it really helps. My ping dropped form 400 to 200 (which I think is still unacceptable when the avg is 100 when I don't have teamviewer running).
Could anybody recommend a similar but perhaps better vnc client?
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theanime, you can definitely bot US servers from the netherlands. My main is watching my nub char do it now very sucessfully with what appears to be decent ping. Dworak obviously doesn't have the problem of view-lag, so maybe there's ways to improve it further.