For oneiric this will be fixed soon with an updated pam package.  For
existing Ubuntu releases, we have not committed to providing an update.
A workaround for this is to add a line such as the following to
/etc/security/limits.conf:

* hard nproc 4096

(you may wish to adjust the value of the limit according to the
resources of your environment)

Or you can disable pam_limits entirely in /etc/pam.d if you aren't
otherwise using it, which would cause the system to fall back to the
kernel defaults.

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https://bugs.launchpad.net/bugs/391761

Title:
  process limit unlimited (regression)

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