Comment 4 for bug 806969

hmm - the problem is actually a little different (appears to be still a problem with Gtk).
There was an issue with reparenting which is more obvious with the Gtk script that I used.

However -

The bug that you're reporting is that is that Gtk is (according to the event information)
using the send-events feature to send data to xterm. In xterm, that's controlled by the
allowSendEvents resource (also a menu entry). Enabling that lets xterm see the data.

I'll have some fixes in this general area for #272, but for this specific issue, it is
a "feature" rather than a bug, which has a workaround.