Harold: Yes, I did reboot. I've rebooted again and found a variety of peculiar clipboard related behaviours that are somewhat tricky to reproduce reliably (just using xterm and notepad here). Simply doing the procedure I descibed before, immediately after a reboot, doesn't work the way I described, it works the way you described. However, after the reboot, after a bit of playing around with clipboard stuff during which time various odd things happen, it seems to settle down into a state where the previous procedure works the way I described. Some of the things I've observed before it settles down are: not being able to paste windows->X; xterm hanging for a few seconds, apparently until I select text in windows and copy to clipboard in windows; xterm not responding to pastes for quite a while but then later doing all the pastes it should have done earlier; etc. I haven't been able to reproduce any of these behaviours in a reliable way.
However, I've repeated the following procedure 3 times and it worked the same each time -- probably not a minimal test case but it shows the problem. I have to follow the steps precisely in order, though: 1) Reboot 2) start a fresh xwin, xterm, notepad, and put some text in the xterm and notepad 3) select, ^C copy from notepad, middle-click in xterm. it pastes successfully 4) select in xterm, leave the text reverse-videoed 5) ^V paste into notepad (successfully) 6) drop the selection in xterm (by left clicking somewhere) 7) ^V paste into notepad (successfully, even though the selection is dropped) 8) select a different piece of text in xterm. 9) drop the selection in xterm 10) ^V paste into notepad: it hangs for a few seconds and doesn't paste. (The paste menu option is NOT greyed out at this point). I hope this is now reproducible for you. Let me know if there's any other info you need, or anything you want me to try doing. Lev