Console does not show login prompt

[Vu Pham]

I need to convert an old Redhat 9 server to a virtual server so I made a 
disk image of this old server, moved it to a KVM server and imported it 
as a virtual server. I could make it start to level 3 with all services 
starting properly and I am able to remotely log into this server.

One problem I found is when I connect to the console of this server 
(using the command "virsh console old_server"), I can see all the logs 
from its reboot until right after the rc.local script is executed. After 
that it is supposed to show the login propmt, but I never see that 
prompt on the console, and the console hangs right there. The server 
does not really hang, because I can ssh/telnet into this server remotely.

Anyone has any idea why ? Below is its kvm config file.

Thanks,
Vu

<domain type='kvm'>
   <name>old_server</name>
   <uuid>0b44b248-d32c-cc0e-5cab-4efb0dcc22bc</uuid>
   <memory unit='KiB'>2097152</memory>
   <currentMemory unit='KiB'>2097152</currentMemory>
   <vcpu placement='static'>1</vcpu>
   <os>
     <type arch='i686' machine='rhel6.4.0'>hvm</type>
     <boot dev='hd'/>
   </os>
   <features>
     <acpi/>
     <apic/>
     <pae/>
   </features>
   <clock offset='utc'/>
   <on_poweroff>destroy</on_poweroff>
   <on_reboot>restart</on_reboot>
   <on_crash>restart</on_crash>
   <devices>
     <emulator>/usr/libexec/qemu-kvm</emulator>
     <disk type='file' device='disk'>
       <driver name='qemu' type='raw' cache='none'/>
       <source file='/tmp_img/img/oldserver.img'/>
       <target dev='hda' bus='ide'/>
       <address type='drive' controller='0' bus='0' unit='0' />
     </disk>
     <controller type='usb' index='0'>
       <address type='pci' domain='0x0000' bus='0x00' slot='0x01' 
function='0x2'/>
     </controller>
     <interface type='bridge'>
       <mac address='52:54:00:23:dc:18'/>
       <source bridge='br0'/>
       <address type='pci' domain='0x0000' bus='0x00' slot='0x03' 
function='0x0'/>
     </interface>
     <serial type='pty'>
       <target port='0'/>
     </serial>
     <console type='pty'>
       <target type='serial' port='0'/>
     </console>
     <input type='mouse' bus='ps2'/>
     <graphics type='vnc' port='-1' autoport='yes'/>
     <video>
       <model type='cirrus' vram='9216' heads='1'/>
       <address type='pci' domain='0x0000' bus='0x00' slot='0x02' 
function='0x0'/>
     </video>
     <memballoon model='virtio'>
       <address type='pci' domain='0x0000' bus='0x00' slot='0x05' 
function='0x0'/>
     </memballoon>
   </devices>
</domain>