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On a headless system

As root, create a the file ~/.vnc/xstartup containing:

#/bin/sh
exec virt-manager

remember to make it executable:

chmod +x ~/.vnc/xstartup

then start vncserver on a higher port, to avoid conflicts with possible VMs serving vnc:

vncserver :60 &

Make sure /etc/xen/xend-config.sxp has line:

(xend-unix-server yes)

or add this and restart xend

Then from your desktop connect to it:

vncviewer yourhost 5960 &

you're using debian and it's trying to use wrong path again