How do I set up a headless server via VNC?

OP has resolved the issue and posted the answer as a comment;

I did happen to stumble across a solution that worked for me. I ran this command: sudo dpkg-reconfigure xserver-xorg and now I am able to run that machine without a monitor/keyboard/mouse

This is a fairly common question. However, I personally believe that VNC is a poor solution for this kind of usage. I would recommend having a look at X2Go. It is much, much, faster tha VNC and it forwards audio using PulseAudio, etc, over SSH. It is quite easy to setup and you don't need to be logged in on the server for it to work.

Have a look at http://www.x2go.org/doku.php/start