RE: Not Working with iOS and Lion
After a reinstall, I was able to get it to work. Here's what I did:
Uninstalled Pocket Cloud on Lion.
VNC is enabled in my Sharing preferences. For this example, it uses password 1234
Reinstalled Pocket Cloud, put in my gmail address as before.
Pocket Cloud on Lion told me my username was my full first and last name, and my password was my usual OSX password. This information was not used at all during the connection process, so it was irrelevant that the application told me it.
On my iPhone, first tried to connect to my computer using my full first and last name and password as the application so helpfully recommended, above. Received the VNC authentication error.
On iPhone, erased the username, put in password 1234 (ie my VNC password).
It connected after a few moments, showed me the grey Lion login screen with the bubbles.
I was able to click on my name at this point and then had to log in with my OSX password using the PocketCloud keyboard. I had to use the "Return" key on the PocketCloud keyboard for the password to actually be accepted, however - I couldn't seem to "click" on the little arrow that's part of the OSX GUI's login screen.
So while it worked, ideally I would just have to put in my password and/or username once, and it would let me straight into my desktop. As is now, I have to first configure my Lion to use VNC, then configure that VNC password in the iOS App, and then login using my OSX password every time I connect to Lion.