¡Muchas gracias, señor!

It seem that what I found is not the "latest xterm" as they stated (it was definitely so at that time).
Well, indeed your work is superb and your settings work.
But I'd like to put it on my P166 and can't do "make install" on it since it's not possible, it seems, to install gcc on it.
Then, my best attempt was to install on a separate dir of my Virtualbox-TC, zip it and unpack it on my P166.
I successfully did that way for other programs yet, but changing the xterm --prefix it seems to me I split the installation somehow.
Not sure on how to set the remaining options:
--localstatedir=/var --sysconfdir=/etc --with-app-defaults=/etc/X11/app-defaults
Putting $PREFIX on them causes the old error.
Sorry, my IT knowledge is limited.
Many thanks