Any client can connect to the X server on a default setup.
xhost command is broken.
My configuration: kdm(kdebase-1.1.2-48), XF86_SVGA(XFree86-SVGA-3.3.6-33)
I cannot replicate this an my machine. Can you provide more details
Unable to reproduce. Works in current release for me, closing
bug as fixed in CURRENTRELEASE (RHL 7.1).