Telnet inside chroot evironment

Question

I have set up a chroot jail inside a folder using debootstrap. Inisde this jail, I installed telnetd. But when I try to login from a remote host, the connection is closed just after login.

administrator@ubuntu:/$ telnet 192.168.1.100
Trying 192.168.1.100...
Connected to 192.168.1.100.
Escape character is '^]'.
Ubuntu 12.04 LTS
dchub login: trail
Password: 
Last login: Mon Sep  9 09:51:47 UTC 2013 from 192.168.1.200 on pts/3
Welcome to Ubuntu 12.04 LTS (GNU/Linux 3.9.9-1-ARCH x86_64)

 * Documentation:  https://help.ubuntu.com/
Cannot execute /bin/bash: Resource temporarily unavailable
Connection closed by foreign host.
administrator@ubuntu:/$

I have already mounted /proc and /dev/pts.

Answer 1

I finally figured out what the problem was.
My host system has zsh as default shell and I used it to go inside chroot jail and start the telnet server, which has bash as its default shell. So when I used bash to go inside chroot jail and start the telnet server, it worked!
This error message still shown to me on each login but everything else works fine.

-bash: fork: retry: No child processes
-bash: fork: retry: No child processes
-bash: fork: retry: No child processes
-bash: fork: retry: No child processes
-bash: fork: Resource temporarily unavailable