OK, seem the VNC created succesfully now but the xterm fail to open with below error. I have included few section below but with no go still. any hints?
Warning: locale not supported by Xlib, locale set to C
Warning: X locale modifiers not supported, using default
xterm: Error 32, errno 2: No such file or directory
Reason: get_pty: not enough ptys
[vncserver]
comment = the VNC server program
paths = /etc/X11/xinit/xinitrc, /etc/X11/xinit/xinitrc-common, /usr/bin/vncconfig, /usr/bin/vncserver, /usr/bin/vncpasswd, /usr/bin/Xvnc, /usr/bin/Xrealvnc, /usr/X11R6/lib/X11/fonts/, /usr/lib64/xserver/SecurityPolicy
includesections = xclients
devices = /dev/null
[xclients]
comment = minimal files for X clients
paths = /usr/X11R6/lib/X11/rgb.txt
includesections = xauth
[xterm]
comment = xterm
paths = /sbin/consoletype, /usr/bin/xterm, /usr/share/terminfo, /etc/terminfo
devices = /dev/pts/1, /dev/pts/2, /dev/pts/3, /dev/pts/4, /dev/tty*