The file /etc/fonts/fonts.conf contains the <dir>/usr/X11R6/lib/X11/fonts/Type1</dir> statements twice, making the second redundant. I suggest replacing the second one by <dir>/usr/X11R6/lib/X11/fonts/TTF</dir>, as Xfree installs Luxi truetype fonts in this directory.
we need a fonts herd
Seemant: I'm on the verge of making one, since nobody responded to my email about it (to -dev, I believe) a week ago or so with any issues.
luxi ttf fonts are badly hinted, the whole idea is not add them by default.
This could be resolved in a cleaner way when the seperation of the xfree fonts is completed, but for now WONTFIX.
& yeah create a fonts herd :)