I did have the same problem when I was booting with .9C. What I did 
was based on an email that I got before 1.0 came out. I edited the 
/etc/ttys file and at first changed the console definition from "off" to 
"on". This gave me a login prompt; but would not let me login as root. I 
got an error about something not enabled for con1. I then added a line to 
/etc/ttys for con1 that was a duplicate of console and ttye0. This let me 
login as root. I was also able to turn console "off" leter and still have 
it work. I don't know why console & ttye0 are defined the same & why you 
seem to need con1 instead of just console; but I'm not knocking it right 
now. 

   You will probably still get the error message about the operation not 
being enabled for ttye0 even after getting ttys set up. It will also 
display this message every once in awhile when you are logged in (~ every 
10 minutes or so) it doesn't seem to be screwing anything up though. I'm 
going to try to get rid of this message when I get home. Anyway, that is 
what I did to get it working.
                                                   - Chip -