Some programs need this setting. This variable must be set to the location where the termcap file used for the above TERM variable is searched. ETC Set to an ETC directory. HOME Set this to an existing directory that is supposed to be a home directory of a user.
Some utilities place temporary and init files here.
This is also future investment for a multiuser configuration, but must still be there. This is one of the most important settings, it determines the root of the XFree86 directory tree. This variable may be set to the display to be used for displaying clients. This must be a complete path. This is not bullet-proof, but prevents the most obvious setup problems.