a different openssh error

After updating openssh to v3.1p1 (under SuSE 7.3), I am no longer able to access X based apps from remote using SSH2 (SuSE 7.1). It's being called from a script executed from an xterm: #! /bin/sh xhost + ssh <destination> xhost - The connection itself works fine, but if I attempt to run an X dependent application, I get an error - unable to connect to DISPLAY remote:0.0. I have edited the configuration file to enable X11forwarding. What next? JimW