Just noticed this ?
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This will happen if you are logging in with X11 forwarding turned on. (E.g. using "ssh -X" or with "ForwardX11 yes" in your ssh config.) This allows you to run applications on remote systems but have them display locally. When you ssh in with X11 forwarding turned on, a secure tunnel is created between the remote system and the local one, and uses the 'xauth' program to properly set up security.
It's completely harmless and will not affect anything when using the Omega. The error is just because the X11 system is not installed on the Omega, so xauth can't be found.
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Heh, happy to help
