OT: pblms starting telnet server

[mitchlist]

Quick question someone might help?
PRivate network, with cablemodem/firewall
running mandrake8.1 server with 2 win98 clients
using xinetd
can't seem to get my telnet server working.
in my xinetd.d/telnet file I have 3 banner listings saying 
bannergood, fail, success
I also have tried to 
a) comment out the only-from (192.168.10.0) [my localnetwork]
b) commenting out the banner lines.

I get a connection to box, shows the banner,yet hangs at that
point..and gets dropped.

I dont have anything in errors on syslog.

suggestions?, or a spot I can find a good telnet ref manual??
(or a quick answer?)
thanks.
Mitch..

PS: syslog shows the telnet server is being started  successfully
via the xinetd daemon