I played around a little bit with this.

When I try this on my Mac (running Apple's X11), I get exactly the same results.

The problem is that the 770 provides services to the apps. Since the same services are not running on your desktop's gui, you get these errors.

I tried the same thing on my Linux box -- Which is running GNOME, and I do not get any errors, but I also never get a terminal.

I verified that the Linux box was configured properly by sending an xterm from the Mac.

It would probably work if you set up the same Window Manager and services on the desktop.

The maemo development environment installation instructions would be a good start.

Theoretically, you could also compile an plain old xterm that did not require any of the system services., But since you could only run similarly compiled apps, I don't see what good it would do you.