I downgraded and it made no difference, the xterms are still white:
gavi...@teenie:~$ apt-cache policy xterm
xterm:
Installed: 241-1ubuntu1
Candidate: 241-1ubuntu1
Package pin: 241-1ubuntu1
Version table:
243-1ubuntu1 6000
500 http://ie.archive.ubuntu.com karmic/main Packages
*** 241-1ubuntu1 6000
500 http://ie.archive.ubuntu.com jaunty/main Packages
100 /var/lib/dpkg/status
--
xterm background colour used to be black, now white
https://bugs.launchpad.net/bugs/421261
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