IIRC, there was an issue with the xterm coloring when 10.0 first came out -
mc for example was just a butt-ugly blue.
A later upgrade to either xterm or xorg fixed the problem later on in -current. Sorry, but I can't remember which it was. It's not you or your setup though, so don't lose sleep trying to figure it out.
Do a google search or search alt.os.linux.slackware from google groups. I believe it was mentioned there several times.