Actually the comment about xterm not being developed anymore is incorrect. xterm has been used by the XFree folks as a test program for i18n support.
If your system has a non-ancient glibc (>= 2.2 . e.g: RH>= 7.0) you should use the UTF 8 locales and uxterm instead of xterm.
uxterm is a simple script that runs xterm, with the added switches to get into UTF-8 mode, and a different class name (so you could use a different font for xterm and for uxterm).
The copy that came with RH7.3 showed me properly all the Korean and Russian spam I got (with mutt). And natually it showed Hebrew in vim, mutt and elsewhere.
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