I upgraded from 8.10 to 9.04, and confirm this issue. This was an
upgrade from freshly installed 8.10 on a 2nd gen. Macbook, and no
tampering by me that would cause this.

There are some related reports, I didn't assign a "duplicate" because
this page has the error message that I got.

I am no expert but this is what I found. This problem seems to be caused
by the filesystem at /dev/pty not being available. It is possible to
make /dev/pty available by changing /etc/fstab (works, should not be
necessary) or changing setup to make it available at the right time in
the boot process.

Diagnostic:
Looked in /etc/rcS.d using Nautilus, the link S11mountdevsubfs.sh is not there. 
There is a link S03mountdevsubfs.sh (so maybe the system tries to make it 
available too early?). 

Manual solution:
To make the S11 link, I pressed ALT+F2 and typed:

gksudo ln -s /etc/init.d/mountdevsubfs.sh /etc/rcS.d/S11mountdevsubfs.sh

After a restart, the problem was gone. Afterwards, I removed the link
S03mountdevsubfs.sh and found no difference with or without it, as long
as the S11 was there.

Sorry developers, only a diagnostic and a solution, not the cause.

-- 
Error while creating child process in terminal
https://bugs.launchpad.net/bugs/245956
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