If you cannot log in because the cursor is not moving, your terminal interface may not be correctly initialized. This can be caused by corrupted /etc/inittab or /etc/ap/chan.ap files.
To log in when the cursor appears to be frozen:
The characters you type do not appear on the screen, but are processed. If you get no response, try again.
strchg -h ldterm <Ctrl>-j
Now, characters should display normally and the <Esc> key should work.