Confirmed on Ubuntu Server 9.10 - Please reset status.
Details:
/etc/ssh/sshd_config contained
X11Forwarding yes
X11DisplayOffset 10
ssh -X and ssh -Y worked fine, but DISPLAY was not set, and the result was the
following:
$ meld foo bar
/var/lib/python-support/python2.5/gtk-2.0/gtk/__init__.py:
** Changed in: openssh
Status: Confirmed => Invalid
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ssh -X fails without warning when xauth not installed
https://bugs.launchpad.net/bugs/51774
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Ubuntu-server