> I also tried 'ATerm' in place of 'XTerm', but to no avail.  Aterm
> remains the default white background and black foregound.
try 'Aterm', not 'ATerm' (this works for me). Here's a snip from my 
~/.Xresources:
        Aterm*background: black
        Aterm*foreground: white
        Aterm*transparent: True
        Aterm*shading: 40
        ...

> I'm running unstable (sid) btw.
So do I. aterm version is 0.4.2

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