Public bug reported:

New installation of Ubuntu Server 7.10, only system level change from
install is to use the procedure in
https://bugs.launchpad.net/ubuntu/+source/initramfs-tools/+bug/129910 to
remove nvidiafb and vesafb from the blacklist and regenerate initrd.

Steps to reproduce:
Login to one of the virtual consoles.
Do some stuff.
Logout.

Behaviour:
When you logout, the console closes and you are left with a blinking cursor at 
the top of the screen.  You can type but there isn't anything listening.
You can restart the dead tty by logging into another or via SSH and restarting 
the relevant terminal - sudo initctl start tty(x)
Once you have restarted it manually, the terminal will respawn after logout as 
expected.

Expected behaviour:
After logout, a new login prompt is presented.

** Affects: ubuntu
     Importance: Undecided
         Status: New

-- 
VTs running getty don't respawn after logout
https://bugs.launchpad.net/bugs/158777
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