Sorry about the delay - emerging took ages! All seems to work here and I've put some patches into magic (untested). You'll have to run magic and answer "yes" when it asks whether you would like to install "xserver". After this, it should all be automated. Please send bug/ success reports!

*Update*
I found a bug to do with the removal of /etc/X11/xkb - I mistyped an if-statement. Should be good now - sorry!

*Update 2*
I have tested on a clean installation of Home v5.0 - working.