Either run the following commands or ./install-script

1.  If you want to override compilator or target dirs, edit compilation.h

vi compilation.h

2. Run configure with the options you want :

./configure

Available options :
--enable-utmp
--enable-wtmp
--enable-xpm-background
--enable-menubar
--enable-graphics
--enable-next-scroll
--enable-xterm-scroll
--enable-kanji
--enable-big5
--enable-greek
--enable-ttygid
--enable-dmalloc
--enable-dlmalloc
--with-term=xiterm
--with-terminfo=/etc/terminfo

3. Create makefiles :

xmkmf ; make Makefiles

4. Compile :

make

*  If compiled with UTMP_SUPPORT, you'll have to install xiterm setuid
       root or setuid/setgid to match the file permissions on /etc/utmp

*  You may need to install setuid root anyway for some systems so that
      they can give you ownership of the tty devices.

5. Become root to install xiterm on systemwide dirs:

su root -c "make install ; make install.man"

6. Eventually add doc/bashrc and doc/inputrc to your ~/.bashrc and ~/.inputrc
to use 8 bit capabilities of bash and some other programs, which are not
enabled by default.
