Today was the first time I had to create a new DomU after upgrading my Xen setup to Debian Lenny. When I booted the VM and logged in via xm console I got some strange errors when installing packages:
Can not write log, openpty() failed (/dev/pts not mounted?)
Additionally, after setting up SSH, I got the following error when logging in with SSH:
Server refused to allocate pty
Solution: install udev, reboot the VM and you’re good to go.