This problem was infinitely more annoying to me, as login wouldn't
even work, since it couldn't chown the tty. I could get in in single
mode but didn't notice anything wrong with /dev, eventually I just
booted back to 2.1.35 which is fine.
Apr 24 17:05:53 ulfheim login[95]: unable to change tty `/dev/tty1' for user `avatar'
Apr 24 17:05:54 ulfheim login[97]: unable to change tty `/dev/tty2' for user `fenris'
Apr 24 17:06:03 ulfheim login[98]: unable to change tty `/dev/tty3' for user `fenris'
`avatar', BTW, is UID 0, so it doesn't seem like the normal permissions
problem.
Mike