GNOME 2.2 runs well on Laptop's LCD screen. Specifically, gnome-terminal pops up with no 
problem. However, I normally access this machine remotely via an XDMCP session from my 
desktop. I tried running this; was able to log in. Nautalis runs fine, but when I try to run 
gnome-terminal it IMMEDIATELY crashes.

100% Reproducible. Further, I tested from two 
different remote platforms:
1.  by logging in both from another Linux machine using 
`XHost :2 -server <IPaddress>`
2. by logging in from a MS Windows based PC X server 
(Xwin32).
Same crashing behaviour in both.

Actual error message (as captured by 
running gnome-terminal inside an xterm) follows:

The program 'gnome-terminal' 
received an X Window System error.
This probably reflects a bug in the program.
The 
error was 'BadAlloc (insufficient resources for operation)'.
  (Details: serial 192 
error_code 11 request_code 53 minor_code 0)
  (Note to programmers: normally, X errors 
are reported asynchronously;
   that is, you will receive the error a while after causing 
it.
   To debug your program, run it with the --sync command line
   option to change this 
behavior. You can then get a meaningful
   backtrace from your debugger if you break on the 
gdk_x_error() function.)