xterm won't run: get_pty: not enough ptys on Sarge

[Adam Kessel <adam@rosi-kessel.org>]

I just did a fresh install with the nightly Sarge business-card ISO
(which I assume is identical or almost identical with Beta-4 released
today).  Everything went fine, including all the X autodetection stuff,
which was created.

I can't start xterm, however.

If I try to run 'xterm', nothing comes up.

If I run gnome-terminal or konsole, the terminal window pops up, but no
prompt.

If I go to one of the consoles and run xterm, I see:

get_pty: not enough ptys 

I'm STFW a little and don't see any obvious solution to this.  This is a
total virgin installation, just selecting common packages with tasksel
and no modification of any /etc files.

Any ideas of what's going on?
-- 
Adam Kessel
http://adam.rosi-kessel.org