I have a similar but different issue I have GNS3 alpha up and running i confirmed dynamips is up and can telnet to it and its the correct version. I have IOU images and when added to GNS3 the go green and stay green but when attempting to console in I get rejected in xterm and putty the I dont see any errors any help would be appreciated.
edit: i do the following not sure if thats normal or not
10 15:20:18 iou_device:474] stopping iouyap PID=5521 for IOU instance 1
[I 140410 15:20:20 ioucon:632] exiting...
this occurs immediatly after starting an IOU device.
I had the same problem. Turns out my symbolic link was incorrect. The libcrypto.so.1.0.0
was not in the same location as the other users on the forum. I am running a 64-bit version of Mint and upon searching for the file, I found it in the /lib/i386-linux-gnu directory. After I changed the link, my problem vanished. You may have the same problem. Search for the lib file and see where it is located. Good luck.