Just to update in case others have similar problems.
I changed to an older kernel allowing access with root password in maintenance mode. Fixed the SSH problem which was caused by a corruption in sshd_config.
The Lish problem was caused by getty not loading on boot. Manual starting of the process by upstart or directly through /sbin/getty worked.
To make it persistent, I updated the /etc/init/hvc0.conf file as follows:
Code:
start on (virtual-filesystems
or starting rcS
or starting mountall-shell)
stop on runlevel 0
stop on runlevel 1
stop on runlevel 6
respawn
exec /sbin/getty 38400 hvc0
Returned to Latest 2.6 Paravirt kernel in profile.
Rebooted.
Solved.