Emacs xterm-mouse-mode double click to highlight a word
C-h f xterm-mouse-mode
is talking:
... works for simple mouse use. Basically, only unmodified
single clicks are supported. When it's on, the normal xterm ...
So, I'm afraid that double clicks are not known to work (they are seen by Emacs as 2 normal clicks).
EDIT 2014-Aug-29: This limitation has recently been lifted in the Emacs backbone (i.e. not in the upcoming 24.4, but in the next version).
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Highlighting does not work in the non-windowed version of emacs (emacs runs in a terminal window). It's hard to tell if things are highlighted, so I recommend using C-space (Mark-set) to highlight things instead, as it gives you a little more control rather than allowing xterm-mouse mode as sometimes you can't double-click mouse correctly.
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