Cause:

Most OpenVZ templates have disabled terminals, you need to enable it first, by altering the Template.


Resolution:

Article: http://pve.proxmox.com/wiki/OpenVZ_Console#Ubuntu_12.04

Alter the TTY.conf file for the Templates to enable Console according to shared Article above,

examples:

• ubuntu-12.04-standard: 

cd /var/lib/vz/template/cache

mkdir -p etc/init

cat <<EOF >etc/init/tty1.conf
# tty1 - getty
#
# This service maintains a getty on tty1 from the point the system is
# started until it is shut down again.
start on stopped rc RUNLEVEL=[2345]
stop on runlevel [!2345]
respawn
exec /sbin/getty -8 38400 tty1
EOF
gunzip ubuntu-12.04-standard_12.04-1_i386.tar.gz
tar -rf ubuntu-12.04-standard_12.04-1_i386.tar etc
gzip ubuntu-12.04-standard_12.04-1_i386.tar
rm etc/init/tty1.conf
rmdir -p etc/init

 

•  centos-6-standard_6.3:

cd /var/lib/vz/template/cache

mkdir -p etc/init
cat <<EOF >etc/init/tty.conf
# This service maintains a getty on tty1 from the point the system is
# started until it is shut down again.
start on stopped rc RUNLEVEL=[2345]
stop on runlevel [!2345]
respawn
exec /sbin/agetty -8 tty1 38400
EOF
gunzip centos-6-standard_6.3-1_i386.tar.gz
tar -rf centos-6-standard_6.3-1_i386.tar etc
gzip centos-6-standard_6.3-1_i386.tar
rm etc/init/tty.conf
rmdir -p etc/init