For some reason the /etc/profile in Gentoo doesn't set the variable used by xterm to display information in the header. Below is how I fixed it on my machine.
If you're using bash, then create a file called ~/.bash_login . We'll put all of our specific initialization stuff in here.
case $TERM in
xterm*)
PROMPT_COMMAND='echo -ne "\033]0;${USER}@${HOSTNAME%%.*}:${PWD/#$HOME/~}\007"'
;;
esac
This will ensure that it only sets the "PROMPT_COMMAND" when your terminal is set to an xterm derivitive, and not a login shell.
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