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policy-1.8-18

avc: denied {search} for pid=2331 exe=/bin/login name=root dev=hda3
ino=blah scontext=system_u:system_r:local_login_t
tcontext=system_u:object_r:default_t class=dir

Looks like /root gets the wrong context, although it's not something
that gets relabeled with setfiles.

Note that this causes:

No directory /root!
Logging in with home = "/"

fixed in policy-1.9-1 and updated policycoreutils