"Can't open display" problem and DirectX8 upgrade

[E Dambik]

A month or two ago, I installed the latest Cygwin and XFree on my Windows
2000 machine and everything appeared to work fine. Recently, I upgraded to
DirectX 8 and, soon afterwards, I noticed XFree would no longer allow
me to run twm or xterms displaying the message 'twm:  unable to open display
"127.0.0.1:0.0"'. I've tried reinstalling Cygwin and XFree carefully
following
the docs as well as installing the MS VisualC version of XFree and the
results
are always the same -- 'unable to open display "127.0.0.1:0.0"'. I'm not
completely certain that DirectX 8 was the cause of this, however, I've
noticed
that others on the list recently appeared to be having similar problems and
wondered if perhaps they had also upgraded to DirectX 8. So, has anyone else
run XFree on a Win2K machine with DirectX 8 or could the cause of this
problem lie elsewhere???

Any suggestions would be greatly appreciated!

Ed