I wonder if it is a pty problem, update you pty numbers from 4 in /etc/init.d/af-services, as I menutioned in the earlier post, see if that fixes it.

Perhaps no pty's are available, try this and let me know, if this fixes it.

Suggested change
vi /etc/init.d/af-services

Change this line.
echo 4 > /proc/sys/kernel/pty/max
to
echo 14 > /proc/sys/kernel/pty/max
or
echo 24 > /proc/sys/kernel/pty/max