For some reason in Slackware 10.2 one can no longer log in as a regular user, su in a terminal (ex. xterm) and run graphical apps such as the seamonkey or mozilla installer.

An example of the error you get is:
Xlib: connection to ":0.0" refused by server
Xlib: No protocol specified

(seamonkey-installer-bin:6410): Gtk-WARNING **: cannot open display:

The solution to that is to run xhost + before doing the su:
$ xhost +
$ su -
$ seamonkey-installer-bin

Once i figure out a way to have this setting permanent, I will post it here.