You are absolutely correct. My response was quick and off the cuff. I wasn't thinking the problem through.You completely missed the point. The problem is not the missing DISPLAY (you can send your X packets to anywhere you like, including :0.0), the problem is the missing *AUTHORITY* to connect to the specified X server (in this case, :0.0). You can set DISPLAY until you're blue in the face if the X server tells you to get stuffed. And it will (on any decent setup).
su only changes your effective user ID but doesn't deal at all with any X stuff. sux is designed to do an su *as well* as carrying over the X connection authority and setting your DISPLAY.
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