This bug was fixed in the package xterm - 261-1ubuntu3
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xterm (261-1ubuntu3) maverick; urgency=low
* Remove setgid bit from the xterm binary (LP: #616100)
-- Mikhail Turov <grolds...@gmail.com> Wed, 11 Aug 2010 16:09:30 +0100
** Changed in: xterm (Ubuntu)
Status: New => Fix Released
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enable libutempter-dev in debian/control file
https://bugs.launchpad.net/bugs/616100
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