cygwin/x problem with UK pound currency symbol, using xdmcp to redhatserver

[Weeble <cyx dot 20 dot superconductor at xoxy dot net>]

Hi,

I hope someone on this list can help out with a problem I've been having 
 using xwin with xdmcp to a server running redhat linux, I'm running 
out of ideas.

There seems to be a problem with the mapping of keys to symbols somwhere 
along the line, most obviously the UKP £ sign appears as something 
shaped like a 't' that has sharp corners when typed into an xterm. When 
VNC is used instead of cygwin the UKP £ symbol appears correctly.
Here are the clues I have so far (in all cases cygwin is version 1.5.10.)

Running win2k + xwin to a redhat server:
xev reports "state 0x11 keycode 12 (keysym 0xa3, sterling)"
The symbol reported the XLookupString line is the same one seen in the 
xterm.

win2k + vnc to redhat server:
xev reports "state 0x1, keycode 92 (keysym 0xa3, sterling)"
When VNC is used the £ UKP appears properly in the xterm.

In both cases when I cut and paste from the xterm into a Windows app I 
get the correct UKP £ symbol.

Other machines tried:

winxp + cygwin to debian server:
xev reports "state 0x1, keycode 92 (keysym 0xa3, sterling)"
(corret UKP symbol appears)

winxp + vnc + debian server:
xev reports "state 0x1, keycode 89 (keysym 0xa3, sterling)"
(corret UKP symbol appears)

Win2k is SP4, XP is SP1.

Apparently using xmodmap with a uk key map makes xwin work, but fouls up 
VNC. However since both work on my setup there *must* be a way of 
getting both working properly.

Lastly if konsole is used instead of xterm (or gnome-terminal) the 
correct UKP symbol again appears.

I've tried setting +kb and the -xkblayout switches etc to xwin to the 
same values set in XF86Config on the redhat server, but nothing seemed 
to change.

There are so many pieces of software involved here which I don't fully 
understand I don't know where to start looking, any light anyone can 
shed on this, it would be much appreciated.

Thanks in advance,

Paul