I also neglected to mention that i did some deeper testing. I logged into my computer and started WoW with the iphone, proceeded to look at my monitor that was showing the game, typed the login info with the iphone, logged in, entered the world, and was even able to move around by setting wow to move on click. I was also able to use my abilities by bringing up the keyboard on screen. Basically, i was playing WoW from across the room with the Iphone as a remote, with no visuals on the iPhone itself.
After reading your post up above, i see you actually get the blank screen at the same time i do.
World of warcraft has said before it doesnt support VNC and ive never seen it work on a PC before, i have seen it work from a mac with different software before. That being said, Logmein isnt actually working like a VNC, so im not sure exeactly what is blocking it, it could just be a bandwidth limit over the free version of logmein.
Let me know if you find anything out further and ill be sure to do the same.