Turns out that VVM cannot reach out to Local System processes - due to permission issues most likely. But, there are a couple of hacks* to it.
1. Run Visual VM as a Windows Service
2. Run cmd.exe as a windows service. A cool way to get a hook to run any executable as a windows service process. Then launch Visual VM from the same.
The key thing here was to enable the service to Interact with desktop.
On a remote machine(Windows 2003) using Remote Desktop, I tried both of them (for some reason I like the cmd.exe as a service better). I could see the processes launched, but I cannot see them in my desktop. I used Process Explorer and saw that I cannot access the Window for these processes. The same thing works on my desktop though (again Win2003).
Then it struck me that I have not logged in on the remote machine on the console session. (Console session is the one that user logs in on the actual machine).
I launched another RDC as "mstsc /console -v
Nothing more** to stop us from VisualVM on any JVM!
* Of course, one can enable JMX monitoring capabilities and attach Visual VM through JMX. I dint want to do this for need of changing the way my process was launched
** Conditions apply!