What about using the SPICE protocol with the VM in order to improve the image session and the host operating system interaction, (among other things, like the ability to share the sessions across the net):
https://www.spice-space.org/static/docs/spice_protocol.pdf
That is interesting and neat!
That said, there are thigns like http://squeaksource.com/RFB.html which accomplishes similar things without the need for changes in the VM :)
vm-dev@lists.squeakfoundation.org