ssh x-forwarding

[xbud <xbud@g0thead.com>]

I ssh to a remote machine and I can't seem to forward any X windows to my 
local display.   I have enabled X-Forwarding in the sshd_config file on the 
remote box.  I always get the following error.
<snip>
_X11TransSocketUNIXConnect: Can't connect: errno = 111
rxvt: can't open display :0
</snip>
If I do an xhost <ipaddy> it will work with the -display option, but I would 
like to have my X's encrypted through the ssh connection.

Can someone point me in the right direction...

-xbud