The login.krb5 binary (used by Kerberos's rlogind and telnetd) attempts to chdir() to the user's home directory to verify it exists, and issues a warning if it fails, instead starting the user's session from the root directory. Problem: it does this before it drops privileges, so if the user's home directory is mounted over NFS with root squashing enabled, it fails even though the user is perfectly able to access her home directory after logging in.
PM ACK and raising prio to high
An advisory has been issued which should help the problem described in this bug report. This report is therefore being closed with a resolution of ERRATA. For more information on the solution and/or where to find the updated files, please follow the link below. You may reopen this bug report if the solution does not work for you. http://rhn.redhat.com/errata/RHEA-2007-0893.html