My tty's were created as a result of running:-
MAKEDEV tty pty
the tty0 with the 5,1 major minor numbers were created as a result of mknod. I tried the commands suggested in your link
host# vzctl set VEID --devnodes /dev/tty:rw
host# vzctl set VEID --devnodes /dev/tty0:rw
which on start up of the VE creates
[root@vz1 /]# ls -l /dev/tty0
crw-r----- 1 root root 4, 0 Nov 30 15:27 /dev/tty0
Googling the error returned a posting from a Xen forum which said :-
"You can't just startx because it'll look for a graphics card (which it doesn't have)." The fact that no graphics modules are loaded makes me wonder whether starting X is achievable in a VE
[root@vz1 /]# lsmod
Module Size Used by
Thanks
Paul