Yep, I see the cursor. Going off what you said, I ran X :1 & and then in another virtual console I did this (Using bash shell):
and xterm came up.
So you think it's a distro thing and not an XFree86 4.3.x thing?
"Floating in a dream-like state, I am the emporer of a parallel universe." --Arch Enemy
My xorg.conf file