To scroll using the scrollbar, grab the grey bar with the middle button.
At some stage (eg xterm version 187 in Debian Unstable), xterm started treating keyboard input differently when the Alt key was pressed. (For PC keyboards, the Alt key has the mod_1 X keyboard modifier set). For example, pressing Alt+x generates a "ø" and pressing Alt+q now generates "ñ". This isn't very good if you want to use the Alt key in emacs(1) in the terminal. The best solution for this is to add XTerm*eightBitInput: false to either $HOME/.Xresources (for a single user) or to /etc/X11/app-defaults/XTerm (for a system wide default). The same change can be made for the UXTerm class for when you're using a UTF-8 xterm.
Another solution (that isn't as tidy as the above) is to use xmodmap(1) to tell X that your Alt key should generate Meta:
xmodmap -e 'keysym Alt_L = Meta_L'
Some handy command line options that xterm understands:
All of these can also be put into your .Xresources so that they will be permanently active without having to pass all these parameters to xterm every time.
echo -ne "\033]0This is a title\007"
The number after the ] can be 0, 1 or 2:
Check your .bashrc to see that the PROMPT_COMMAND EnvironmentVariable isn't set to overwrite your newly set window title every time it displays a prompt.