Problem with OpenSSH 2.3.0p1 and Linux kernel 2.4.1pre8 (Disconnecting: fork failed: Resource temporarily unavailable)

[Jayme Frye]

I'm having a problem with OpenSSH 2.3.0p1 and Linux kernel 2.4.1pre8. 
After a client connects and is authenticated ssh fails to fork, 
disconnects and dies. Normally I run sshd out of inetd with the -i flag. 
thinking this might be the problem I ran it in daemon mode from the 
command line. The results were the same. Running with maximum debugging 
on I captured the following:
<snip>
debug1: Local version string SSH-1.99-OpenSSH_2.3.0p1
debug1: Sent 1152 bit public key and 1024 bit host key.
debug1: Encryption type: 3des
debug1: Received session key; encryption turned on.
debug1: Installing crc compensation attack detector.
debug1: Starting up PAM with username "adminjf"
debug1: Attempting authentication for adminjf.
debug1: PAM Password authentication accepted for user "adminjf"
Accepted password for adminjf from 209.155.224.94 port 868
debug1: PAM setting rhost to "orion.inventivecomm.com"
debug1: session_new: init
debug1: session_new: session 0
debug1: Allocating pty.
debug1: PAM setting tty to "/dev/pts/0"
debug1: PAM establishing creds
Disconnecting: fork failed: Resource temporarily unavailable
debug1: Calling cleanup 0x8057aa0(0x80e47a0)
debug1: pty_cleanup_proc: /dev/pts/0
debug1: Calling cleanup 0x8050498(0x0)
debug1: Calling cleanup 0x80653c8(0x0)

Under 2.2.19pre7 everything works fine. Has anyone run across 2.4 kernel 
problems with OpenSSH?

Jayme Frye
System Administrator
Inventive Comm.
jfrye at inventivecomm.com