well, some progress here, I was able to login through the recovery panel, 
change to root and edit /etc/stab
Alas though neither the single line nor the 3 lines have had any affect on my 
sessions.  I still have no Terminal and running Update Manager is still 
encountering the same error.  Thanks to all for wonderful ideas, suggestions.

-- 
update manager "Error failed to fork pty"
https://bugs.launchpad.net/bugs/338071
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