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Set up X forwarding in PuTTY, with X display location set to :0.0
Launch PuTTY ssh session.
Launch Xming. Make sure that display is set to :0.0 (this is default).
echo "I'm going to paste this into WINDERS XP" | xsel -i
will insert the string into the windows cut and paste buffer.
Thanks to Dennis Williamson at stackoverflow.com for sharing...