Cause

When trying to open a Terminal window (dtterm) in CDE, a pop-up window appears stating, Unable to get pty!

dtterm is not able to open /dev/pts/int (where int is an integer). The user cannot open this file because grantpt(3C) failed to change the permissions on the file. grantpt(3C) failed because the binary /usr/lib/pt_chmod is not setuid root. The permissions on /usr/lib/pt_chmod must be 4111.