Using the matchbox wm with Xnest

Hi,

I have been trying to get matchbox nest working on my PC, but seem to be 
having problems with matchbox-window-manager running more than one 
application.

What I am doing...

1. Running matchbox-nest
2. export DISPLAY=:1.0
3. running matchbox-window-manager
3. run "xterm &" two times to get two instances of xterm

I find that I can enter text into only one of the terminals that are 
running, if I switch to the other window I cannot enter text. If I 
switch back to the first window I can enter text again. I noticed this 
with other applications and came down to xterm as a test. I am working 
with matchbox-window-manager-0.8.4.

I tried replacing matchbox-window-manager with twm and it works fine (I 
can enter text into the two xterms). I also tried it with Xnest (and not 
matchbox-nest) and the behavior is the same. I also tried it with 
versions, 0.8.1, 0.8.2 and 0.9rc2 and am seeing the same behavior.

Any suggestions?

Warm Regards,

Samyeer