From the Xen xmexample1 file:
# To create one using the VNC backend and sensible defaults:
#
# vfb = [ 'type=vnc' ]
#
# The backend listens on 127.0.0.1 port 5900+N by default, where N is
# the domain ID. You can override both address and N:
#
# vfb = [ 'type=vnc,vnclisten=127.0.0.1,vncdisplay=1' ]
#
# Or you can bind the first unused port above 5900:
#
# vfb = [ 'type=vnc,vnclisten=0.0.0.0,vncunused=1' ]
#
# You can override the password:
#
# vfb = [ 'type=vnc,vncpasswd=MYPASSWD' ]
#
# Empty password disables authentication. Defaults to the vncpasswd
# configured in xend-config.sxp.
So put something like vfb = [ 'type=vnc' ] in your VM config file.