On a potato system after upgarding xterm to 3.3.6 I am unable to start
xterm as a regular user (starting as root works).  The "~/.xsession-errors"
file says: 

xterm: Error 14, errno 13: Permission denied

The xterm binary is:

-rwxr-sr-x    1 root     utmp       161680 Jan 15 03:53 /usr/bin/X11/xterm

And group "utmp" is present in my /etc/group file.

Any suggestion?

Attila

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