xterm: Error 14, errno 2: No such file or directory problem with the current binaries at cygwin

[Mad Dave]

If I perform the following command

rsh ntxserver "xterm -display mymachine:0 -e bash"

I get the following error

xterm: Error 14, errno 2: No such file or directory

But however if I run the xterm through strace with the following command

rsh ntxserver "strace xterm -display mymachine:0 -e bash"

the xterm starts up fine.  This is not a major problem as rxvt works fine,
but I was just wondering if anyone had any ideas as to why this was
happening or any solutions ?

Dave