Description of problem: xterm needs to be linked against an icon. Currently it has the default page icon, but should probably use the gnome-xterm.png icon. I am not sure where this gets linked so put it in redhat-artwork.
The icons are set by the apps themselves, so xterm code would require modification.
This is a feature enhancement/modification that the xterm author (Thomas Dickey) would have to make to upstream sources first and then get integrated into XFree86, and then into Red Hat Linux via upstream. If you would like to see this enhancement made, please email the xterm author directly, or the xfree86 mailing list to request the feature. Closing enhancement request as UPSTREAM
actually not. It's a customization that Redhat could easily make without compiling xterm. It would be done by setting the iconPixmap resource, e.g., *iconPixmap: terminal Although the "terminal" pixmap is in the standard distribution, I don't recall seeing it used for a very long time (X11R4). A more suitable choice would be what KDE uses - I don't know the name of that file.
Ok this looks like a build patch then..
Closing WONTFIX