I experienced similar behaviour, however I saw different results when using "vserver foo start" and when using "/etc/init.d/util-vserver start", with only the latter exhibiting the problem. The problem appears to be caused by secure-mount segfaulting (as you can see in your logs) when mounting /dev/pts. Changing the vserver's fstab file to include the options "rw,noexec,nosuid" for the devpts entry seems to fix the problem. Here's the entry from my fstab in case it helps anybody:
none /dev/pts devpts rw,noexec,nosuid,gid=5,mode=620 0 0 -- To UNSUBSCRIBE, email to debian-kernel-requ...@lists.debian.org with a subject of "unsubscribe". Trouble? Contact listmas...@lists.debian.org Archive: http://lists.debian.org/20100218145733.ga20...@hercules.pureserver.info