Rude of me not to post workarounds...

After logging in via ssh, a CTRL-C will interrupt the stream of
-bash: /dev/null: Permission denied 
allowing you to chmod 666 /dev/random /dev/null
looks like you need to do this each time you log in or put it in something 
sensible like /etc/rc.local

You may also need to change
1:2345:respawn:/sbin/getty 38400 tty1
in /etc/inittab to
1:2345:respawn:/sbin/getty 38400 xvc0

to fix the consol access stuff..

-- 
 a xen-create(d) Dapper DomU does not run on a hardy Dom0
https://bugs.launchpad.net/bugs/250438
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