I must have been skimming through those man pages just a wee bit too quickly.
Xauthority is defined as $HOME/.Xauthority.
In this case the "local" users was picking up $HOME from the global login file. 
Well for the demo the users home is nowhere near $HOME. I commented that line 
out and all is well.
/mark
Original post:
The end user is going to give a demo of his work on a standalone workstation. I 
added a disk drive to his existing workstation so he could copy all the data 
required for the demo to this drive. I then placed an entry for this user in the 
password file (before NIS) and placed his $HOME in the demo directory. AFter 
logging on as the "local" user, xhost +hostname fails. xhost +localhost fails, 
xhost + fails. Comment out the local user and log on again, (resolved via NIS 
and NFS mounts $HOME), we have no problems with the xhost command. We need this 
command to be successful in order to run the demo.
Received on Tue Feb 13 2001 - 02:16:22 NZDT