When I click on launch xterm, the xterm is launched outside the glass system (center)
Yep, becouse windowed mode lg3d doesn't support X applications. You need to kill current X session ("init 3" on ctrl-altF1 console, for example), set java_home and path from CLI and start lg3d-session. Which will get you to full screen looking glass WM. Where xterm works.
Thanks for posting the instructions and helping out the
folks on the alias!
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