Confirmed this still happens on RC candidate image from 20101101
# status tty1
tty1 stop/starting

# status openvt
openvt start/pre-start, process 475

Also, I noticed that if I try to manually run '/bin/openvt -e -c 1 -- 
/bin/auto-root-login', I get the following output on the tty1 console:
ioctl TIOCSCTTY: Operation not permitted

-- 
Headless on beagle, beagle XM, does not boot into tty
https://bugs.launchpad.net/bugs/652221
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