I installed NetBSD 4.0.1 under VMware Fusion 2.0.1 on my OS X 10.5 box, and I had a heck of a time getting X11 forwarding working. I was getting the sshd configuration slightly wrong. Anyway, on the server I edited /etc/ssh/sshd_config:
X11Forwarding yesThen I ran:
# X11UseLocalhost yes
rm /home/jj/.XauthorityTo login from my Mac, I ran:
ssh -YA firstname.lastname@example.orgViola! xterm now works!