On which computer do you work at and on which computer do you want the programs to run?
If you want to use "mycomputer" as an X terminal and run the apps on the server, you can configure it so that your entire session runs on the server, but you are working on "mycomputer". The display will need to be set to mycomputer:0.0 whether or not you rsh into the server, or start the program from the server. It is what the application (the client) uses to display output to the server (X terminal, mycomputer).
Another way to do it is to ssh into the server. "ssh -X hostcomputer". On the server the display is localhost:10.0. The ssh server acts like a proxy x server. On the other end of the tunnel the localhost:0.0 is used.
Code:
ssh -X delllap
Password:
Last login: Wed Jul 4 14:52:13 2007 from hpamd64.jesnet
[jschiwal@delllap ~]$ echo $DISPLAY
localhost:10.0
If you use rsh to log into a shell, from mycomputer to hostcomputer, (sorry, by I hate these names. Whoever thought up this "My ..." crap?) you still need to set DISPLAY=mycomputer:0.0.
If you are at hostcomputer, rsh into mycomputer, and then launch an app. The app is running on mycomputer and not on the server. It is as if you didn't walk over to the server, but started the application at mycomputer instead.