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Install XMing from sourceforge on your desktop machine.
Install the latest putty version from
Configure sshd on your server to allow X11 forwarding ( /etc/ssh/sshd_config: X11Forwarding yes )
Change the shortcut to XMing to look like this: PATHTOXMING\Xming.exe" :0 -clipboard -multiwindow -ac

Set up a new putty connection to your server and make sure to enable the X11 Forwarding checkbox on the putty client.
If you do `env | grep DISPLAY` you should see something like: ashr@ElGuapo ~ $ env|grep DISPLAY

Now you can run your favourite X program inside the terminal, and it's graphics will be server from your XMing server locally.
Great Win.