I can reproduce this bug, both for xfontsel and emacs. Removing msttcorefonts doesn't seem to make a difference. xlsfonts reports 7258 fonts, xfontsel reports 9930 names.
One potentially interesting data point is that, for me, this only happens for locales other than C or en_US (i.e. "LC_ALL=C xfontsel" works, but "LC_ALL=el_GR xfontsel" does not). Vassilis.