If I run galeon locally on machine/xserver (A), log in remotely from
machine/xserver (B), and try to open a new window on machine/xserver (B)
with "galeon -w", the window appears on machine/xserver (A) instead of (B),
ignoring the $DISPLAY variable and the --display cammand-line option.

This is what happens when I log in through an ssh connection to the remote
host acacia, which is already running a galeon instance:

acacia ~$ galeon -x -w --display=$DISPLAY
Message: Galeon already running, using existing process
acacia ~$ echo $DISPLAY
acacia.CS.Berkeley.EDU:10.0

BTW, it also seems to me that I shouldn't get the message "Message: Galeon
already running, using existing process" if I explicitly TELL it to use an
existing process, but this is a minor quibble.