xterm is installed suid root on the xfree 4.2.0-r9 ebuild this is a security issue, and is not needed!
It shouldn't work as normal if you use the -ls option, as it needs to be suid root to write the utmp/wtmp files upon login. Whether this is necessary or not, and if this should be default behaviour in Gentoo is not for me to decide. :)
it will happily not write to {u,w}tmp and go on its way, similar to the other terms in the system. the others i've played with (aterm,rxvt,eterm) do not set suid; we should go for consistency and security.
*** Bug 2800 has been marked as a duplicate of this bug. ***
*** This bug has been marked as a duplicate of 7630 ***