Primary symptom: /proc/self/fd is there and normally populated, however /dev/fd is not. Process substitution therefore fails, because bash wants to create files under /dev/fd.
/dev/.static/ and /dev/.udev are populated. aptitude udev shows that the Debian package is installed, even though udev cannot be supported on this Xen vps (and, I believe, isn't supported by default until later stable versions of the Linux kernel).
Host:
Linux version 2.6.16.29-xen (root@potige) (gcc version 4.1.2 20061028 (prerelease) (Debian 4.1.1-19)) #1 SMP Tue Dec 5 20:43:23 CET 2006
The Debian inst. is an up-to-date Lenny 5.0.4.
Question
I can solve the immediate problem by symlinking from proc/self/fd to /dev/fd, and putting the appropriate script in init.d. But are there any risks arising from Debian being misinformed about what my vps can do? And if so, what should I do about it?