User@laptop ~
$ export DISPLAY=":0.0"

User@laptop ~
$ xterm.exe
Warning: Missing charsets in String to FontSet conversion
      2 [main] octave-3.2.4 2576 exception::handle: Exception: STATUS_ACCESS_VIOLATION
    637 [main] octave-3.2.4 2576 open_stackdumpfile: Dumping stack trace to octave-3.2.4.exe.stackdump
      2 [main] octave-3.2.4 4092 exception::handle: Exception: STATUS_ACCESS_VIOLATION
    582 [main] octave-3.2.4 4092 open_stackdumpfile: Dumping stack trace to octave-3.2.4.exe.stackdump
      2 [main] octave-3.2.4 2132 exception::handle: Exception: STATUS_ACCESS_VIOLATION
    594 [main] octave-3.2.4 2132 open_stackdumpfile: Dumping stack trace to octave-3.2.4.exe.stackdump
      2 [main] octave-3.2.4 4024 exception::handle: Exception: STATUS_ACCESS_VIOLATION

User@laptop ~
$ octave
GNU Octave, version 3.2.4
Copyright (C) 2009 John W. Eaton and others.
This is free software; see the source code for copying conditions.
There is ABSOLUTELY NO WARRANTY; not even for MERCHANTABILITY or
FITNESS FOR A PARTICULAR PURPOSE.  For details, type `warranty'.

Octave was configured for "i686-pc-cygwin".

Additional information about Octave is available at http://www.octave.org.

Please contribute if you find this software useful.
For more information, visit http://www.octave.org/help-wanted.html

Report bugs to <bug@octave.org> (but first, please read
http://www.octave.org/bugs.html to learn how to write a helpful report).

For information about changes from previous versions, type `news'.

octave:1> image
warning: loadimage is obsolete and will be removed from a future version of Octave; please use imread instead
      2 [main] octave-3.2.4 2644 exception::handle: Exception: STATUS_ACCESS_VIOLATION
    569 [main] octave-3.2.4 2644 open_stackdumpfile: Dumping stack trace to octave-3.2.4.exe.stackdump
      3 [main] octave-3.2.4 1248 exception::handle: Exception: STATUS_ACCESS_VIOLATION
    511 [main] octave-3.2.4 1248 open_stackdumpfile: Dumping stack trace to octave-3.2.4.exe.stackdump
      2 [main] octave-3.2.4 272 exception::handle: Exception: STATUS_ACCESS_VIOLATION
    559 [main] octave-3.2.4 272 open_stackdumpfile: Dumping stack trace to octave-3.2.4.exe.stackdump
      2 [main] octave-3.2.4 872 exception::handle: Exception: STATUS_ACCESS_VIOLATION
    494 [main] octave-3.2.4 872 open_stackdumpfile: Dumping stack trace to octave-3.2.4.exe.stackdump
      3 [main] octave 4020 fork: child 560 - died waiting for dll loading, errno 11
error: popen2: process creation failed -- Resource temporarily unavailable
error: called from:
error:   /usr/share/octave/3.2.4/m/plot/__gnuplot_open_stream__.m at line 28, column 44
error:   /usr/share/octave/3.2.4/m/plot/gnuplot_drawnow.m at line 85, column 19
octave:2>