emacs font-lock-mode issues in solaris 10

[jk <jk.lists.questions@gmail.com>]

I'm having two issues with solaris 10 and emacs.

1) font-lock-mode fails with "X windows are not in use or not
initialized"
2) backspace works in the shell, but fails inside emacs.  Instead, it
pulls up the "*help*"

TERM is set to xterm
stty:
speed 9600 baud; evenp hupcl
rows = 46; columns = 71; ypixels = 694; xpixels = 658;
erase = ^h; swtch = <undef>;
-inpck -istrip icrnl -ixany ixoff onlcr
echo echoe echok echoctl echoke iexten

Thanks in advance,

jk