had exactly this problem. couldn't launch an xterm from within GNOME either -- 
it suggested i was 'out' of ptys. if i launch an xterm via 'pfexec xterm' 
everything is fine, but i can only act as root in such a scenario.

the console was fine, though.

i didn't know how to word the problem sufficiently to open a defect. i should 
take a screenshot and open one if no one else has done by the time i get back 
home this evening.

-- eldee
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