tramp failing in new build

[Gilbert Harman]

Using today's CVS build in Mac OS 10.2.5, in emacs version 23.5.50.1, I get
the following error message using tramp in a way that was working until
today (using a build from a couple of months ago):

Tramp/nil address@hidden buffer
Pseudo-terminal will not be allocated because stdin is not a terminal.
Permission denied, please try again.
Permission denied, please try again.
Permission denied (publickey).

Message Buffer:
...
Loading tramp...done
tramp: Opening connection for address@hidden using nil...
tramp: Waiting for prompts from remote shell
tramp: Waiting 60s for prompt from remote shell
tramp-process-actions: Login failed
...

While this was going on emacs froze up on me without prompting for a
password and without allowing me to type a password in.

I have no trouble connecting by using tramp in emacs version 21.1.1 from a
terminal window. 

  Gil