Virtual Private Servers installed using RHEL-4 template does not show “lastlog”. Audit is not supported in Virtuozzo kernel. SSHd service in RHEL-4 tries to connect to audit daemon and fails.
You will need to tweak some SSHD settings to get this working under VPS environment.
Open /etc/ssh/sshd_config change UsePAM and UseLogin to below given values.
Next is but obvious — restart sshd service.
/sbin/service sshd restart &
Its done as far as settings are concerned. Please login and logout once to your VPS and fire “last” command to check if lastlog is working.