Hi, thanks for updating xterm. Finally, it works again (did not work for me for 3 years due to immediate crash after start...). I am wondering, however, why you configured out support of the -u8 option. I recompiled xterm 229 with full feature support and -u8 gives me a nicely working Unicode terminal, regardless of cygwin's broken locale support. Please change that for an update.
Usage note: depending on the application, it may help to set the locale environment properly when starting a UTF-8 xterm. This would have to be done manually. The editor joe edits UTF-8 well with proper LC_ALL setting. The editor mined edits UTF-8 even without proper LC_ALL setting. Kind regards, Thomas Wolff