Don't feel bad it took me many hours of fiddling to get it working. Make sure that when you ran the install script for Xfree86 you were in sudo mode (see the first post).

The newer xDarwin I just put in an application folder in my user directory, because since I installed the older xDarwin as root it would not let me replace it. Then just run it from there and it should work. Sometimes it does crap out on load, just try again.

If nothing else try just running the older xDarwin (the one in the applications folder) that should also work and since there does not seem to be any great improvment (other then rootless) between the two. Just keep in mind that there will be two xDarwins and make sure you are loading the one that you really want.

Ignore the stuff about the xterm, I don't know what it means, but it does not seem to do anything.