Got error when trying to open xterm under Angstrom

Could someone help me with this error I got:

root@beagleboard:~# xterm
ipv6: disagrees about version of symbol struct_module
Warning: This program is an suid-root program or is being run by the root user.
The full text of the error or warning message cannot be safely formatted
in this environment. You may get a more descriptive message by running the
program as a non-root user or by removing the suid bit on the executable.
xterm Xt error: Can’t open display: %s

I downloaded all the files from Koen’s blog Successfully installing Angstrom but could not proceed any further to test the demo applications (e17, abiword, omapfbplay, etc.) Please help. Btw, how do I set display? I only how the hyper_terminal through s232 connection. I do have a connection to to a projector through DVI-D. Thanks, -Hung(newb)