Yesterday evening I found out the hard way (after hours of trying to
get xterm to work) that pty's do not work. It seems that 2 lines in
atari/conf.c are in the wrong order. People who make their own kernels,
can fix this by swpping the pts and ptc lines in the cdevsw[]. Ironically,
the comment is correct. This makes me believe that not all kernels will
have this bug...
Somehow it doesn't help to change the major number of the pty nodes to
fix the problem. It seems that somebody is expecting the slave pty's
to have the major-1 of the masters. I did not check this further however.

For those triggering on the mention of xterm ;-) Yes, I have X11R6 running.
There needs to be done some work on the Server-side. Mostly small things
like the keymap and the middle mouse button emulation.

Leo.