xfig issues on Ubuntu Breezy

I was getting a lot of errors on xfig when running, mainly for the font sets available on the system. Here is the problem description and the solution to get it working:
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I am having a very strange problem with my xfig installation on Ubuntu Breezy (5.10). I installed the foillowing packages initially:
fig2ps
transfig
fig2sty
xfig
xfig-doc
xfig-libs

When I started xfig after that from a terminal I get this:

Warning: Missing charsets in String to FontSet conversion
Warning: Cannot convert string "-*-times-medium-r-normal--16-*-*-*-*-*-*-*,-*-*-medium-r-normal--16-*-*-*-*-*-*-*,*--16-*" to type FontSet
Warning: Missing charsets in String to FontSet conversion
Warning: Unable to load any usable fontset
Warning: Missing charsets in String to FontSet conversion
Warning: Cannot convert string "-*-times-medium-r-normal--16-*-*-*-*-*-*-*,-*-*-medium-r-normal--16-*-*-*-*-*-*-*,-*-*-*-r-*--16-*-*-*-*-*-*-*" to type FontSet
Warning: Missing charsets in String to FontSet conversion
Warning: Unable to load any usable fontset
Warning: Missing charsets in String to FontSet conversion
Warning: Cannot convert string "-*-times-bold-r-normal--16-*-*-*-*-*-*-*,-*-*-bold-r-normal--16-*-*-*-*-*-*-*,-*-*-*-r-*--16-*-*-*-*-*-*-*" to type FontSet
Warning: Missing charsets in String to FontSet conversion
Warning: Unable to load any usable fontset
Warning: Missing charsets in String to FontSet conversion
Warning: Unable to load any usable fontset

Now the xfig starts, but when I click on *T* for typing text and then click on the figure area, I get this error:

Can't find -*-times-medium-r-normal--13-*-*-*-*-*-ISO8859-*, using 6x13

On a friends recommendation I installed the cyrillic font set as described here:

http://dir.filewatcher.com/d/Ubuntu/....10581772.html

I have no idea what is wrong but I am still gettting the same errors, even after restarting the xfs, restarting X server and even rebooting the machine.

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The solution as described in (https://launchpad.net/distros/ubuntu/+source/xfig/+bug/2066) is:

I was able to get rid of these font warnings by doing any of the following:

- "sudo dpkg-reconfigure locales" set default to ISO-8859-1 instead of UTF-8
- put "xset fp rehash" in gnome-session. It must be run after each login.
- run xfig with "LANG=C xfig"

Note: This problems occurs for many of the old X packages. xfontsel, xload, etc.