Cannot get dropbear to open shell on uClibC 586 inux, kernel 2.6

[Tony p.]

Same kind of problems, everything going dandy (got a small pty test in c written
to make sure that /dev/pts is all dandy) and I get right after authentication 
dropbear closing connection on me. Same thing if I patch up to use mtx (I know,
it's Sun code), if I use ptys classic or openpty. What gives ? thanks. tony

root at 192.168.1.28's password:
debug3: packet_send2: adding 64 (len 55 padlen 9 extra_pad 64)
debug2: we sent a password packet, wait for reply
debug1: Authentication succeeded (password).
debug1: channel 0: new [client-session]
debug3: ssh_session2_open: channel_new: 0
debug2: channel 0: send open
debug1: Entering interactive session.
debug2: callback start
debug2: x11_get_proto: /usr/bin/xauth  list :0.0 2>/dev/null
debug1: Requesting X11 forwarding with authentication spoofing.
debug2: channel 0: request x11-req confirm 0
debug2: client_session2_setup: id 0
debug1: Sending command: echo hello
debug2: channel 0: request exec confirm 0
debug2: fd 3 setting TCP_NODELAY
debug2: callback done
debug2: channel 0: open confirm rwindow 8000 rmax 8000
debug2: channel 0: rcvd eof
debug2: channel 0: output open -> drain
debug2: channel 0: obuf empty
debug2: channel 0: close_write
debug2: channel 0: output drain -> closed
debug1: client_input_channel_req: channel 0 rtype exit-status reply 0
debug2: channel 0: rcvd close
debug2: channel 0: close_read
debug2: channel 0: input open -> closed
debug3: channel 0: will not send data after close
debug2: channel 0: almost dead
debug2: channel 0: gc: notify user