when I build 1.2.26 on i86 linux 2.0.36

./configure  --disable-scp-stats --with-socks5

all works fine. i.e.
if I 

ssh -f host.xxx.com /usr/X11/bin/xterm -ls -T host

I get asked for a password and then a nice x window pops
likewise when I go inside the firewall with

ssh -f host.xx.com ssh inside.host.xx.com /usr/X11/bin/xterm -ls -T inside

I get the passphrase request form firewall host folloed by ask-passwd box,
then an x window pops

if I build 
./configure  --disable-scp-stats --with-socks5 --with-libwrap

I can ssh to the firewall directly, but if I attempt to execute the 
/usr/X11/bin/xterm command I get an error that says the display is 
explicitly killed. It looks like ssh does not know where to forward the
X display when wrappers are included. For testing, hosts.allow contains

sshd : ALL : allow
ALL: ALL : deny

for both test conditions described above.

Can someone help me fix this? Have I missed something obvious??

Michael

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