I believe that this is fixed in 1:1.1.99.1~git20070727-0ubuntu2, which adds -nolisten tcp to the default Xgl options.
** Changed in: xserver-xgl (Ubuntu)
Importance: Undecided => Low
Status: New => Fix Released
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XGL listens by default on network
https://bugs.launchpad.net/bugs/109976
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