The tty_ldisc_hangup function in drivers/char/tty_ldisc.c in the Linux kernel 2.6.31-rc before 2.6.31-rc8 allows local users to cause a denial of service (system crash, sometimes preceded by a NULL pointer dereference) or possibly gain privileges via certain pseudo-terminal I/O activity, as demonstrated by KernelTtyTest.c.
http://www.openwall.com/lists/oss-security/2009/09/03/7
http://www.openwall.com/lists/oss-security/2009/09/03/6
http://www.openwall.com/lists/oss-security/2009/08/31/1
http://www.kernel.org/pub/linux/kernel/v2.6/testing/ChangeLog-2.6.31-rc8