[current] stdin: error: invalid preprocessing directive #xterm
 

I get this in console after startx:

stdin:27:2: error: invalid preprocessing directive #xterm

and then repeats with #urxvt and #rxvt

Startx works fine apart from that. I've googled a bit but found nothing relevant.

Any ideas?

Try running xwmconfig and reselecting your desktop.

If that don't work edit your ~/.xinitrc and replace any /usr/X11R6/ with /usr/

xwmconfig and .xinitrc are both fine and working. Any other ideas?