I've done what you said and the following happens,
Code:
linux2[3]% export DISPLAY=130.85.24.89:0.0
export: Command not found.
linux2[4]% setenv DISPLAY 130.85.24.89:0.0
linux2[5]% emacs test.cpp &
[1] 5276
linux2[6]% emacs: Cannot connect to X server 130.85.24.89:0.0.
Check the DISPLAY environment variable or use `-d'.
Also use the `xhost' program to verify that it is set to permit
connections from your machine.
I wasn't sure about the last one so I didn't do that. I'm not too familiar with linux so I couldn't locate the ip of my server.
I hope its not just user error....