I did some poking around with 'xset' and noticed that the values shown
for autorepeat delay/rate were 660/25.  This seemed a little odd, so I
reprogrammed the delay/rate to something more common:

    xset r rate 250 10

and autorepeat started working again.  Adding this command to Xsetup_0
or GiveConsole did not affect the state of the server once the session
had started, but adding it to my .xsession file enables autorepeat when
I log in.  If the delay/rate are reprogrammed back to 660/25, autorepeat
stops working again.

Based on what I observed, I suspected that the beep-on-every-keypress
problem may be related to having 'keyclick' enabled somehow.  Adding:

    xset c 0

to Xsetup_0 did not change the behavior.  Once the user has logged in,
the keyboard no-longer beeps on keypress, so there's no need to add
anything to .xsession.

Maybe this can point to what's going on?

-- 
John D. Baker, KN5UKS                    NetBSD     Darwin/MacOS X
jdbaker(at)mylinuxisp(dot)com                 OpenBSD            FreeBSD
BSD -- It just sits there and _works_!