I am running CentOS/RHEL 6 and having the same issues as described in the referenced question below.
I have tried all of the settings suggested in this almost identical question, but to no avail.
On the server-side I have the following sshd_config settings:
X11Forwarding yes
X11DisplayOffset 10
xauth is installed on the server, and after successfully connecting over SSH I do get a MAGIC-COOKIE in ~/.Xauthority. I do not get any xauth related errors. 
When I ssh in using -X (and add verbosity for troubleshooting -vvv), I successfully connect.  When I try to run xclock it fails with an error of "Can't open display: localhost:10.0". This is a STDOUT error and not an error from the ssh -vvv.  I do NOT receive any failed X11 attempts in ssh.
Then I try to verify the $DISPLAY variable, but get no output (it's not set).
It there some other setting somewhere that sets $DISPLAY properly?  In this particular case, I can force the setting export DISPLAY=localhost:10.0, which then returns correctly after running echo $DISPLAY.  Unfortunately, I still do NOT get any X-Windows program (e.g., xlcock) to come back.  I still get the "Can't open display: localhost:10.0" error. 
I'm at a loss.  Any suggestions? Anything else that can set $DISPLAY during an SSH session?


X11UseLocalhost noinsshd_configfixed this issue on my machine)