gistfile1.el

(require 'xterm-title)
(xterm-title-mode 1)
(defun my-xterm-title ()
"A hook function to update the xterm title. Attached to `post-command-hook'"
(let* ((fn (buffer-file-name))
(fnd (file-name-directory fn))
(dir-part (substring fnd 0 (- (length fnd) 1)))
(file-part (substring fn (1+ (length dir-part)) (length fn))))
(cond ((buffer-file-name) (setq xterm-title-frame-title-format (list (getenv 
                 "USERNAME") "@" (system-name) ": " file-part " (" dir-part ")")))
(t (setq xterm-title-frame-title-format (list (getenv "USERNAME") "@" 
                 (system-name) ": no file"))))))
                 (add-hook 'post-command-hook 'my-xterm-title)

;; set terminal title
(when (and (not window-system)
               (string-match "^xterm" (getenv "TERM")))
      (require 'xterm-title)
      (xterm-title-mode 1))