xterm problem?

My understanding is that /usr/share/terminfo/x/ is populated from a standard set of files and not by compiling, i.e. tic, termcaps.
I am getting from both regular user and root when issuing:
man tic ------> WARNING: terminal is not fully functional
tset -q --------> xterm: unknown terminal type
infocmp ----->can't open /usr/share/terminfo/x/xterm
echo $XTERM --> xterm
Now the xwindow I am getting that in defines itself as: xterm
Can someone tell me where XTERM is defined when I boot the system; I know it is not in /etc/profile, ~/.profile, ~/.bashrc.
The system is Slackware 13.0 (full install) using xfce window manager. Privs are 755 on all directories so don't think they are a problem.
I have also run my scheme using chkrootkit and matched the md5 check sums to the original set created before being used by others/web so I am don't think there has been an intrusion. At a total loss to explain how I got here but am insisting on not reinstalling.

Where is your real terminfo db? (try locate -b terminfo or locate -b xterm). One possible place is /lib/terminfo.

"xterm" on xfce is the right value for $TERM.

The terminfo is at: /usr/share/terminfo/ and xterm at: /usr/share/terminfo/x/xterm.
Ran file at the latter and get: /usr/share/terminfo/x/xterm: Compiled terminfo entry
So the system should know where it is at. Since man tic and tset are totally or partially unable to find or utilize that info then like infocmp says maybe they can't open it either.
BTW the xwindow I use is defined using xterm but has no problem visible when it is started up.
Yes, xterm is what $TERM should echo. I had thought that there should be a TERMINFO in the environment to point to /usr/share/terminfo/ but there is none. Can't find that it should be either.
I am going to google TERMINFO momentarily to see if that helps but tried that b4 to no avail maybe my search terms will change.
I found a /etc/initrc but all it did for xterm was to define the beginning/end of line code.
Further prowling took me to /etc/X11/xdm where Xsession and Xresources are defined.
That lead to the discovery that regular users have .xsession files. Tho this is a difference it coes not explain the identical actions for both user types.
Just discovered that "clear" receives an 'xterm ': unknown terminal type. for both root and regular users.
All of these messages together suggest that the xterm is not defined in the system. Infocmp .cannot open terminfo and find cannot locate termcaps so how does the system know anything about xterm? Yet /etc/X11/xdm/Xsession invokes /usr/bin/xterm where I would presume the system would learn of it or belch. I do not understand so need help.