The X11 server "XFree86" seems not to honor keyboard options set in XF86Config. The target macine is a ThinkPad 570, complete RH7.0 install (not n upgrade from 6.2) with all updates as of 10/17; chip is a neomagic. setting the ' XkbOptions "ctrl:swapcaps" ' option does nothing, but setting the same functionality with xmodmap works. Interestingly the XF86_Mach64 server works (on another RH7.0 machine) works just fine with the same keyboard options in the config file
You are using the wrong config file. XF86Config-4 is the correct file for XFree86 4.x