I just noticed this on the Zonbu site, I don’t believe it is being pushed out yet:
Releases
Version 5.797 – released 2007-08-17
New feature
- Kiosk Edition: Zonbu can be used as a secure publicly accessible Internet terminal
Improvements
- Improve video driver.
- Improve monitor detection again.
- Add support for iPods formatted with iTunes 7.3.
- improve support of iPods formatted on a Mac.
- Fix a problem with Yahoo Video in Firefox.
- Fix a bug in sound preferences.
- Fix bugs in cachefs throttling algorithms.
Known bugs
- Printing on a Windows shared network printer does not always work.
It will be interesting to see what exactly this addresses (MPEG Playback?) and whether or not some of the things like the missing fonts reference in the Image Editor have been fixed too.
-Mr. Zonbu
Real life with the Zonbu Mini-PC 
The release page has been updated with more info about what has changed in this new 5.797 version. Yes, the MPEG playback issue is fixed in this release but not the missing fonts in the Image Editor. This update will be automatically pushed soon. Note that users will need to reboot their machine. We are still polishing our updater mechanism to make it as invisible as possible: our hassle-free promise. Once again, you may file any bug or problem you experience on our bugzilla interface: http://bugzilla.zonbu.com. We are still in beta, thanks by advance for your help to make Zonbu a great product.
No word on the VNC bug, sadly. I hope this gets fixed soon, too. I would think remote control for monitoring purposes could fit the kiosk mode quite well.
Talking about the kiosk mode, did you try using that in your publicly placed Zonbu yet, Mr. Zonbu?