And for me it works... 
Do you realize, that window manager on the server (this is the node, where you access the VE by ssh from) should be killed and X server still running? So: X server running but without any(!) WM. (without WM only if you want to run remote window manager actually)
After that, please, do the following:
# ssh -vvv -X -Y -l root vz202
Password:
Last login: Mon Mar 5 09:38:22 2007 from 192.168.1.200
# echo $DISPLAY
# gnome-calculator
Then, please, post output of these commands and what you see on the screen.