I am definitely not an expert on this, but I am afraid you're barking under the wrong tree.
X is a "server" but you have to consider that its clients are the applications.
You are "sitting" in front of the "server" and apps (local or remote) use the X server on YOUR box to show YOU what they are doing, and you use the same server (via kb & mouse) to talk to them.
There's no way a remote x server will show up on a terminal program running in VT100, which is strictly a text (or text-based graphics) thing. The change in color is probably a random interpretation of some feedback the terminal does not really expect.
You have to think of the terminal as something that only sends and displays charachters, with very little additional formatting, like char color, background, blinking, etc. + the occasional system beep (aka "bell", as it originally WAS a metal bell going "bing!"

. Those things are the descendants of teleprinter terminals that were used decades ago. Yes, output was on paper!
Read up on something like "remote X server session", and you'll find the info I can't possibly give you! And BTW, do post back when you find out. I don't need this right now, but I'd love to try it out.
Filippo / spamhog
Computer Victim (as in "fashion victim"

- Milan, North Poldavia -
40% WinME, 40% Linux (Debian, Libranet, Vector, Lycoris), 20% Win98, trace amounts of Win2k, xBSD, QNX