Before we can get started you must enable your local X Server to recieve from the network.
To do this in Linux in edit /etc/X11/gdm/gdm.conf

Change:
#DisallowTCP=true
DisallowTCP=false

ssh -R 6001:127.0.0.1:6000 sokol@192.168.1.116
sokol@192.168.1.116's password:
Last login: Fri Apr 1 12:04:48 2005 from 192.168.1.108
[sokol@localhost ~]$ xterm -display 127.0.0.1:1

Another option is to make ssh always create a tunnel.
This is done with

/etc/ssh/ssh_config

changing # ForwardX11 no
to
ForwardX11 yes