I would consider this a regression - it was working fine in Natty, so
has been broken for oneiric.

I would like to see a default ubuntu instance work without changes in an
openvz environment - it would help encourage the use of ubuntu for
virtualized environments. For me, ubuntu wouldn't start at all until I
had made some changes to the init scripts.

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https://bugs.launchpad.net/bugs/880049

Title:
  100% CPU usage in init if /dev/console is not available

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