[vserver] Unable to Start one Guest after kernel/util-vserver upgrade

Hi Guys

I just upgraded the kernel on my home server because of drive support
issues.

Its now running:
Linux: 2.6.33.1-vs2.3.0.36.30.3
util-vserver: 0.30.216~r2772-6~bpo40+1

All my older guests have started up with no issue but the ubuntu hardy
will not start.

Its get the following error:

----
apps1:~# vserver squeezebox start
vsysctl: open("."): Permission denied
An error occured while executing the vserver startup sequence; when
there are no other messages, it is very likely that the init-script
(/sbin/init) failed.
Common causes are:
* /etc/rc.d/rc on Fedora Core 1 and RH9 fails always; the 'apt-rpm' build
  method knows how to deal with this, but on existing installations,
  appending 'true' to this file will help.
Failed to start vserver 'squeezebox'
----
Any ideas, there is alot more information I could give but someone out
there might just know the answer.
Thanks
Mike