Problem X11 forwarding through SSH (Fedora 1)

Hi everyone,

I used to run RH8 on my server, and had no problem running graphical
programs over SSH on my workstation. However, when I upgraded to Fedora
1, suddenly I could not run ANY graphical programs over SSH. I thought
at first it might be a firewall issue, but after making sure my firewall
settings were exactly the same as they were with the RH8 system, I have
completely ruled out any firewall issues.
Thus it must be something else... Perhaps a configuration issue or a
problem with the OpenSSH that ships with Fedora1?
My ssh_config looks like this:

Host *
ForwardX11 yes

And my sshd_config looks like this [relevant lines only included]:

X11Forwarding yes
X11DisplayOffset 10
X11UseLocalhost yes

I know I don't need the second two lines -- they are normally commented
out, but in this case they are exactly the same as the default values.
And, last but not least, here is some output when I do "ssh -v -X":

[daryl@daryl daryl]$ ssh -v -X server
OpenSSH_3.5p1, SSH protocols 1.5/2.0, OpenSSL 0x0090701f
debug1: Reading configuration data /etc/ssh/ssh_config
debug1: Applying options for *
debug1: Rhosts Authentication disabled, originating port will not be
trusted.
debug1: ssh_connect: needpriv 0
debug1: Connecting to server [192.168.0.1] port 22.
debug1: Connection established.
debug1: identity file /home/daryl/.ssh/identity type -1
debug1: identity file /home/daryl/.ssh/id_rsa type -1
debug1: identity file /home/daryl/.ssh/id_dsa type -1
debug1: Remote protocol version 1.99, remote software version
OpenSSH_3.6.1p2
debug1: match: OpenSSH_3.6.1p2 pat OpenSSH*
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_3.5p1
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
debug1: kex: server->client aes128-cbc hmac-md5 none
debug1: kex: client->server aes128-cbc hmac-md5 none
debug1: SSH2_MSG_KEX_DH_GEX_REQUEST sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_GROUP
debug1: dh_gen_key: priv key bits set: 138/256
debug1: bits set: 1566/3191
debug1: SSH2_MSG_KEX_DH_GEX_INIT sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_REPLY
debug1: Host 'server' is known and matches the RSA host key.
debug1: Found key in /home/daryl/.ssh/known_hosts:1
debug1: bits set: 1612/3191
debug1: ssh_rsa_verify: signature correct
debug1: kex_derive_keys
debug1: newkeys: mode 1
debug1: SSH2_MSG_NEWKEYS sent
debug1: waiting for SSH2_MSG_NEWKEYS
debug1: newkeys: mode 0
debug1: SSH2_MSG_NEWKEYS received
debug1: done: ssh_kex2.
debug1: send SSH2_MSG_SERVICE_REQUEST
debug1: service_accept: ssh-userauth
debug1: got SSH2_MSG_SERVICE_ACCEPT
debug1: authentications that can continue:
publickey,password,keyboard-interactive
debug1: next auth method to try is publickey
debug1: try privkey: /home/daryl/.ssh/identity
debug1: try privkey: /home/daryl/.ssh/id_rsa
debug1: try privkey: /home/daryl/.ssh/id_dsa
debug1: next auth method to try is keyboard-interactive
debug1: authentications that can continue:
publickey,password,keyboard-interactive
debug1: next auth method to try is password
daryl@server's password:
debug1: ssh-userauth2 successful: method password
debug1: channel 0: new [client-session]
debug1: send channel open 0
debug1: Entering interactive session.
debug1: ssh_session2_setup: id 0
debug1: channel request 0: pty-req
debug1: Requesting X11 forwarding with authentication spoofing.
debug1: channel request 0: x11-req
debug1: channel request 0: shell
debug1: fd 3 setting TCP_NODELAY
debug1: channel 0: open confirm rwindow 0 rmax 32768
[daryl@server daryl]$ nedit
NEdit: Can't open display
[daryl@server daryl]$

It might be worthwhile to point out that the .ssh directories for users
only contains "known_hosts", so no special configuration is located there.
I have also looked online for people with similar problems, and have
found that this problem is often presented but I could not find any
solutions. I would greatly appreciate any help that anybody can offer me
with this issue.

Thanks in advance,

Daryl.