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I'm trying to enable X11 forwarding from my headless ubuntu server (12.10) to regular ubuntu to forward virt-manager so I can install windows kvm machines. The problem is when I try to open an X window from an X-enabled ssh session (ssh -X user@server), the $DISPLAY variable is empty, and I get the error "display is not set".

Can somebody please point me in the right direction, I read several topics on the internet that advise to install xvbf, some that don't, issues with xauth,... But a lot of that information contradicts each other. To be clear: I'm not searching for other methods of virtualization or a different way to install my vm, I just want X forwarding fixed.

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Check to see if forwarding is disabled:

grep Forwarding /etc/ssh/sshd_config

More info on this page:

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