I just disabled adding xterm in etc/mhn.defaults.sh.
It looses big time in non-X11 environments, and hence should not
be listed to mhn unless we're sure we actually are running X11.
The man page of mhn says:
User Environment
Because the display environment in which mhn operates may
vary for different machines, mhn will look for the envi-
ronment variable $MHN. If present, this specifies the
name of an additional user profile which should be read.
Hence, when a user logs in on a particular display device,
this environment variable should be set to refer to a file
containing definitions useful for the given display
device.
... hence, listing xterm in the system-wide default seems to be
wrong to me, so I took it out.
Geert Jan