I ran into the same issues, received the error "PTY allocation request failed on channel 0" during every SSH connection attempt. I don't really know what I'm doing...
However, I was able to get SSH working again, using this article as a reference:
http://blog.asteriosk.gr/2009/02/20/pty ... channel-0/You can get a limited shell through SSH with this command:
$this->bbcode_second_pass_code('', 'ssh user@host "/bin/bash -i"')
After doing this, do the following, which apparently fixes permissions on the system device files and allows SSH to work normally, as it did before the upgrade:
$this->bbcode_second_pass_code('', 'rm -rf /dev/ptmx
mknod /dev/ptmx c 5 2
chmod 666 /dev/ptmx
umount /dev/pts
rm -rf /dev/pts
mkdir /dev/pts
mount /dev/pts')
The last command didn't work for me until I added /dev/pts to /etc/fstab so I fixed that by doing this, as someone notes in the comments...
$this->bbcode_second_pass_code('', 'echo "none /dev/pts devpts defaults 0 0" >> /etc/fstab')
After doing this, mount /dev/pts and you should be good to go... this worked for me, but if this is bad advice, someone please say so.
I can't automount anything either though - haven't figured out how to fix this yet. One of the packages recently released is incompatible with something (great detective work, right?

)
edit: arch has this news entry about kmod, but no details specific to this issue on ARM:
http://www.archlinux.org/news/kmod-repl ... nit-tools/edit2: the automounting issue is probably related to the udev update, same issue here?:
viewtopic.php?f=29&t=2315edit3: Fixed (for me). I downgraded udev to an earlier build that I had cached on my system, then overwrote it with udev-oxnas.
$this->bbcode_second_pass_code('', 'pacman -U /var/cache/pacman/pkg/udev-175-1-arm.pkg.tar.xz')
Y
$this->bbcode_second_pass_code('', 'pacman -S udev-oxnas')
Y
EDIT4: Don't downgrade udev... pacman -S udev-oxnas instead (read the rest of the thread to see why).