If you want see information from your shell (like current directory, user and hostname) in xterm window title just place the following lines in your ~/.zshrc file:
case $TERM in
*xterm*)
precmd () {print -Pn "\e]0;%n@%M: %~\a"}
;;
esac
P.S.: I use “*xterm*” in this example, because i have TERM like “color_xterm”, “xterm-sun” and “xterm-hp”, see /etc/termcap file.