iTerm and X11

[deesto]

Is there a way to launch X11 stuff within iTerm? I really like iTerm as a replacement for Terminal so far, but I still have to launch a Terminal from within X11 anytime I use X on a remote machine.

I found an old solution for a bash profile script, but it doesn't seem to work:
http://lists.apple.com/archives/x11-.../msg00175.html

I have DISPLAY set to localhost:0.0, but this didn't work; I tried setting it to :0.0 but I still get an xauth warning, which keeps X from working (even though I still get a DISPLAY value on remote servers).

In addition, I also would like to get SSH key forwarding working: I have a script in .bash_profile to start the agent, so I am prompted for my passphrase when Terminal/iTerm is launched. But this doesn't seem to forward the agent, so I'm prompted for my passphrase each time I open another iTerm tab or window. I've also installed SSHKeychain and added my key there, but that doesn't seem to work either ... maybe I need to tell iTerm to use SSHKeychain somehow?