hmm. xnest should work fine with xfs (I'd used it that way under 3.1.2, when I was developing the gzipped font stuff) but note that the very end of the man page has some warnings about how xnest actually *fakes* all of it's font handling. (Rather than repeat it here, look near the end of man Xnest, under "xnest as a server", for the gruesome details.)
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