I decided to follow the advice on the aterm website and use rxvt instead. It works as expected: no scrolling problems like aterm, no strange window warping like lxterminal, no segfault like lilyterm, and the 256 color and true type fonts work. The apps browser downloads work and alsamixer works. I haven't tried unicode fonts. I'll submit it after I test it some more. If there is something else I could test I might give it a try.
When I ran tce-update shouldn't it have also updated *.dep files? I've come across some out of date ones. Or is there something I need to do different when using tce-update?