Errrm - NewToKindle described the problem as being that the mouse cursor isn't shown. The actual error in your case is
Code:
/mnt/us/kindlevncviewer/kvncviewer.sh: line 7: ./kindlevncviewer: Permission denied
... and I have a hard time to figure out what the problem could be here. Are you sure that the file "kindlevncviewer" actually exists within the same folder that kvncviewer.sh file is in? When in doubt, reinstall KindleVNCviewer by copying over the whole kindlevncviewer folder again. Make extra sure to use the USB device eject function so that all files are written properly.