Setting-up Xorg as a thin client/X-terminal

[Bob Apodaca]

I am using:
X.Org X Server 1.12.4
Release Date: 2012-08-27

Trying to set-up some systems in an X-terminal type configuration where 
a user is presented with a chooser and can log-in to a remote system.  I 
found some helpful resources here:

http://www.bodenstab.org/xdm.html
http://zweije.home.xs4all.nl/xauth-9.html

My problem is when I do:

Xorg -indrect system1

I can choose and log-in to system1 from the chooser, but I cannot log-in 
to any other systems (for example "system2"). More interestingly, if I do:

Xorg -query system2

I am presented with the log-in screen for system2. When using indirect 
and a system is chosen, the screen goes black, waits a while, then the 
chooser is shown again.

I have tried to increase log levels, etc but cannot determine what is 
happening. I would appreciate some suggestions.