RemoteDroid: Use your Android phone as a computer remote
Joshua Sera has written "RemoteDroid", a VNC-like remote control interface that turns your T-Mobile G1 (and presumably any future Android-powered phone) into a touch surface for controlling your computer. It can also use the trackball in lieu of the mouse. It's free and works with the three major desktop operating systems.
RemoteDroid Project page [RemoteDroid.net]

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Gmote already does this and also allows you to control VLC.
http://www.gmote.org/
Hi, I'm Josh, the creator of the RemoteDroid app.
There are a few more features I added today, so they aren't covered in the video featured above:
- Tap to click
- Trackball as scroll wheel
- Customizable mouse sensitivity
- Ability to save IP addresses
More details at my site for those interested. Thanks.