Steve,
Actually, inputing Japanese characters *DOES* work from a terminal emulator
on Mac. So this could be a terminal emulator problem, rather than XEmacs,
or a problem in the terminal-specific lisp code.
When I work with Mac emulator, I set TERM to vt100-w. At Sun, TERM is set
to "sun", I believe. (I'll verify that tomorrow when I'm in office.)
-kuro
p.s. I'll be out of office today. I'm writing this from home.
p.p.s. Highilighting the region still doesn't work from home either.