This are the files: (snip)
This certainly appears to be a set of source code for xterm. What I'd do is:
* (As brianL said: Read the README and INSTALL files. Just so you can see what's needed to get xterm installed. These files -- and possibly some of the others that are listed -- ought to answer most of your installation questions.
* Optional but recommended: Read the man page for xmkmf(1) and make(1). These will likely be needed to be issued by you as part of the installation process. It doesn't hurt to be a little familiar with them. (Depending on what you're doing with Linux, you may be encountering make(1) quite a bit.)
* Have at it. If something doesn't compile you'll get some "interesting" error messages.
If the compile blows up, there could be a lot of reasons. Post any error messages that you encounter. If you're installing from source code, you might be missing libraries that are needed during the link phase. (Though, sometimes "missing library" type errors won't show up until you actually attempt to execute the program.)
Just curious: Wasn't there a pre-packaged xterm you could install?