At last it seems the problem with xterm in VL-all-flavors has been found
with the help of nightflyer. Xterm in VL for users could not show special characters
with Alt-some-key, would not react to Ctrl-Alt-F* to get out of X and in some version
would not respond to setxkbmap **.
The problem is in the settings of /home/user/.Xdefaults.
I have not yet narrowed down which setting in particular, however, using the .Xdefaults
from root or from another slacky distro that probem in user is gone.
Strangly, I and others have reported this problem several times with hardly eliciting
any replies and none that found the cause.
Thanks Nightflyer & Regards