Solaris 10, telnet after reboot gets disabled

I do not like the instructions on the opensystems blog you pointed to, as it replaces the default service in SMF. This is bad as it is likely that a future system patch will revert your changes. Here's my take on it, from a default system state:

1. Disable the system syslog:
   svcadm disable system-log
2. Download and install (using pkgadd) syslog-ng from sunfreeware.com
   http:// sunfreeware.com/programlistintel10.html#syslogng
   Do not forget to also download and install its dependencies.
3. Create a configuration file /usr/local/etc/syslog-ng.conf (the one offered on the Open Systems blog is a good start).
4. Setup the SMF voodoo:
   • Create /var/svc/manifest/site/syslog-ng.xml from http://pastebin.com/QrGC3u6p (I could not paste the file here as the formatting was mangled)
   • Load the new service: svccfg import /var/svc/manifest/site/syslog-ng.xml
   • Enable the service: svcadm enable syslog-ng

Now, your system is not vanilla if you followed the procedure on Open Systems blog. Here's what you need to do to revert:

1. Disable the modified SMF service:
   • svcadm disable system-log-ng
   • svccfg delete system-log-ng
2. Remove the syslopg-ng package
   • pkgrm NCsysng
3. Re-import the original system log service:
   • svccfg import /var/svc/manifest/system/system-log.xml
   • svcadm enable system-log

Hope this helps.

While the boot archive was indeed corrupted and needed to be rebuilt there was also a different problem. The steps I used to fix the corrupted boot_archive were correct.

Thanks to Andrews comment to my question I was able to turn on verbose output and see where the system was hanging.

From the grub menu I selected the menu item I use to boot normally, hit 'e' to edit and then 'e' again on the kernel line and added -v to the end. Hit enter to save edits and then hit 'b' to boot the edited menu item.

The device that was hanging was pci1458,5004 and after looking through /etc/device_aliases I was able to see that it was the USB controller. After some searching I saw the suggestion to go into the BIOS and disable Legacy USB Support. After doing that the system booted normally. A new device was connected to the server that must have caused the issue.