I would believe the error message until it is proven wrong. The error message is claiming that the program in trouble is "login". That seems very odd. But if is true, then the system-wide file table must be too small. So increasing that would be the first thing that I would try. Just increase "maxusers" in /etc/system and reboot. "maxusers" is actually used to size several tables in the kernel.
If this doesn't work, I would next suspect a garbled os and so I would then re-install.