The FAQ listing for section 6.5. Fatal server error: could not open default font 'fixed' does not work. For one thing, the suggested remedy does NOT change the mounting of the /usr directory.
A more direct fix would be to update the Xinstall.sh to do the following: 1. Check mount output for either / or /usr mounted as textmode. 2. Unmount the offending partition: umount /usr umount / 3. Remount root or usr : mount --binary c:/cygwin / mount --binary c:/cygwin/usr /usr Warren