To try xterm just (ironically) type xterm into your terminal. As you can see its basic. If you want to make use of it you can add it to your menu.
Right click applications menu and click on edit menus. Pick a applications category to put the xterm menu item into. You will probably want it where your defualt terminal is, in accessories. When you have selected a category goto new item and enter the details like below.
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Give it a name, like 'xterm' or 'terminal'. Give it the command xterm. And if you like give it a comment and a nice icon. Done.
No xterm ? install it with
sudo apt-get install xterm
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