Using lsb_release -rd
Description:    Ubuntu 8.10
Release:        8.10
Kernel - uname -a Linux  2.6.27-7-generic #1 SMP Tue Nov 4 19:33:06 UTC 2008 
x86_64 GNU/Linux

After the latest update (apt-get update; apt-get dist-upgrade) I am
having the same problem as Steve. Pressing CTL-ALT-F1-6 yields a
blinking cursor. If I blind login after pressing CTL-ALT-F2 and also run
top then press CTL-ALT-F7 and open a terminal window, run: ps aux|grep
top yields - root      6311  0.4  0.0  19100  1328 tty2     S+   13:00
0:00 top

This is a major problem and a show stopper for me.

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ctrl-alt-f1..f6 drops to blinking cursor; no 'console' login possible
https://bugs.launchpad.net/bugs/282068
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