This works well. No full refresh during typing, just partial refreshes where new letters appear - as long as you don't move a scrollbar with your growing text. The horizontal one can become nasty.
I use tightVNC on the desktop and androidVNC on the Reader. Didn't have much to set up. There should be plenty of working software combinations. I wonder what the best one is.
Oh yeah and thank you for creating this topic. I didn't know you could control your computer from the T1.