Fail to login SSH “PTY Failed”

I am running linux on a Cavium Octeon V0.8 Processor.

I am unable to login to a newly created user account.

so far i have done

adduser <name>
chown -R <name> /home/<name>
chmod 755 /home/<name>

from a remote session

ssh <name>@<ipaddr>

The machine returns

PTY allocation request failed on channel 0

Then

# sshd -rddp 1234
debug2: load_server_config: filename /usr/local/etc/sshd_config
/usr/local/etc/sshd_config: No such file or directory

asked Jan 10 '11 at 23:42

	Does it also happen with other user accounts? Try running a second SSH daemon in debug mode: `sshd -rddp 1234` (where 1234 is a temporary port for `ssh -P`). Also, is this an OpenVZ container? I often see those having insanely strict `numpty` limits; check `/proc/user_beancounters` just in case. – grawity Jan 11 '11 at 6:06
	I have noticed that when I have a vaild ssh session as root then start a second root session,i get the error also. I am not running OpenVZ but that does sound really neat – Xiuhtecuhtli Jan 20 '11 at 18:32

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