I'm using fvwm 2.4.20 and when I hold down a key (whether in an xterm or an rxvt) it doesn't repeat.
All was well until I upgraded from SuSE-10.2 to SuSE-11.0 ("xorg -version" says "7.2.0" on SuSE-10.2 and "1.4.0.90" on SuSE-11.0, oddly enough). The Linux kernel versions are respectively 2.6.22.5 and 2.6.25.5. If I run the Gnome desktop, my keys repeat just fine. A secondary problem: if I tell inittab to bring the system up in runlevel 5, then none of my xterms (we're back to fvwm2 now) will take the focus (or more precisely, they do take focus but the cursor remains as an outlined rectangle (rather than a solid one) and I can't type anything into that xterm. I don't have this problem, though, if the system comes up in runlevel 3, which I don't mind so much.