The font used in xterms is extremely compact yet readable. What font is that? The closest I\'ve found that I can use in other other applications is DejaVu Sans Mono or Bit
I've really taken a liking to Inconsolata:
http://www.levien.com/type/myfonts/inconsolata.html
But it's not really appropriate for an xterm. Better as a programming font.
I'd strongly suggest Monaco 9pt, not anti-aliased:

Never seen anything as readable and space-efficient. Note that it's the same number of pixels wide as Monaco 10, but slightly shorter.