To get X forwarding to work you need to do three things:
1. Install xorg-x11-xauth on the VDS server "yum install xorg-x11-xauth"
2. Enable sshd X11 forwarding by setting "X11Forwarding yes" in /etc/ssh/sshd_config and restart sshd "service sshd restart".
3. Enable X forwarding when you connect with ssh "ssh -X -l root 10.10.10.10" or if you are using Putty select "Enable X11 forwarding" in settings.
If you are running Windows you need to run a X server like Xming or similar.
When you are done you can install and run xclock (yum install xclock) to test that it worked.