Description of problem:

This feature request is in relation to configuration of X for multiple
simultaneous interactive users. i.e.: one host with multiple
display/keyboard/mouse. X11R6.9 and X11R7.0 now natively include parameters to
get this configured. It would be nice if Redhat included a utility to configure
this feature without having to manually tweak configuration parameters.
system-config-display might or might not be the best candidate for this RFE,
please feel free to reassign to another package if this does not fit in here.

Below is a mini-howto directly taken from 
http://blog.chris.tylers.info/index.php?/archives/14-Multiseat-X-Under-X11R6.97.0.html

1. Install your favorite distro.

2. Upgrade the X server to X.Org 6.9 or 7.0 if necessary (pre-release versions at
http://x.org) - FC5 test releases include X.org 7.0.

(Note that 6.9 and 7.0 are the same software, but 6.9 is a monolithic build and
7.0 is modular).

3. Configure and test a Xinerama configuration using "X -configure".
(Refer to http://www.tldp.org/HOWTO/Xinerama-HOWTO/ if needed)

4. Plug in your additional USB keyboards and mice.

5. Find all of the keyboards and mice in /proc/bus/input/devices. Note
the Handlers line for each device; find the 'eventX' value for each
keyboard and the 'mouseX' value for each mouse.

6. Construct an InputDevice section for each keyboard, and place it in
the /etc/X11/xorg.conf file:

Section "InputDevice"
    Identifier "keyboardN"
    Driver "evdev"
    Option "Device" "/dev/input/eventX"
EndSection

Replace N with a sequential keyboard number, and X with the event
handler identified in step 5.

7. Construct an InputDevice section for each mouse, and place it in
the /etc/X11/xorg.conf file:

Section "InputDevice"
    Identifier "mouseN"
    Driver "mouse"
    Option "ZAxisMapping" "4 5"
    Option "Device" "/dev/input/mouseX"
EndSection

Replace N with the a sequential mouse number, and X with the mouse
handler identified in step 5.

8. Create a ServerLayout section for each seat, and add it to the
xorg.conf file:

Section "ServerLayout"
    Identifier "seatN"
    Screen 0 "Screen0" 0 0
    InputDevice "mouseN" "CorePointer"
    InputDevice "keybaordN" "CoreKeyboard"
EndSection

9. Test the displays using the -novtswitch and -sharevts options:

X -novtswitch -sharevts -layout seatN :0

Replace N with each seat number in turn. You probably won't be able to
zap (Ctrl-Alt-Backspace) the server nor switch VTs, so you'll need
another system with ssh access to terminate the X servers (or run
something like 'while sleep 60 ; do killall X ; done' in the
background).

10. Although you can start each X server using the X (or Xorg) binary, it's
easier to track and kill individual servers if you link separate names (X0, X1)
for each server:

ln -s /usr/X11R6/bin/X /usr/X11R6/bin/X0
ln -s /usr/X11R6/bin/X /usr/X11R6/bin/X1

Note that the X server may be relocated - when I installed 6.9 from the X.org
CVS onto FC4, the server went into /usr/X11R6/bin, but in FC5 (7.0) it's in
/usr/bin. This command will work in any case:

ln -s $(which X) $(which X)0
ln -s $(which X) $(which X)1

11. Add the new X servers to the display manager configuration. If
you're using Fedora Core 4, for example, modify /etc/X11/gdm/gdm.conf:

- Comment out this line by prepening the #:
#0=Standard

- Add these lines, one for each seat:
0=Standard0
1=Standard1
...

- Add these sections:
[server-Standard0]
name=Standard server
command=/usr/X11R6/bin/X0 -novtswitch -sharevts -layout seat0
flexible=false

[server-Standard1]
name=Standard server
command=/usr/X11R6/bin/X1 -novtswitch -sharevts -layout seat1
flexible=false

12. Restart the display manager and enjoy!