This bug was fixed in the package lxc - 0.7.4-0ubuntu8

---------------
lxc (0.7.4-0ubuntu8) oneiric; urgency=low

  * debian/patches/0009-templates-dont-use-devpts-in-fstab: remove devpts
    entry from $confdir/container/fstab, as it is not needed, and can
    cause the host devpts mount options to change, because it happens
    before lxc has done a mount -o newinstance.  (LP: #607636)
 -- Serge Hallyn <[email protected]>   Fri, 06 May 2011 12:08:07 -0500

** Changed in: lxc (Ubuntu)
       Status: In Progress => Fix Released

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https://bugs.launchpad.net/bugs/607636

Title:
  chardev: opening backend "pty" failed

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