It looks like X11 forwarding is broken (both 6.2 and rc2):

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[gerald@soliton gerald]$ ssh
localhost                                          
[gerald@soliton gerald]$ xterm
channel 0: istate 4 != open
channel 0: ostate 64 != open
X connection to soliton:10.0 broken (explicit kill or server shutdown).
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The DISPLAY variable is set correctly and the corresponding option in
/etc/ssh/sshd_config is also correct:
X11Forwarding
yes