OK, go ahead and close this one. Something was really fucked up on that system. The difference in ltrace output for the working vs non-working setup made no sense so for sanity I did a cmp on the xterm binaries and they were different! The xterm binary on the broken system was somehow corrupted. I tried --reinstall and it was still was different from the one on the working system. Then I rebooted, did --reinstall again and now they are the same and it works.


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