OK,
that was from the OUTPUT chain, 'OUT=eth0'
I'm going to ask you to clear all the OUTPUT rules and change the OUTPUT policy to ACCEPT.
It's a safe thing to do, coz If you can't trust what your box is sending out, there are bigger problems to deal with...
Do you know how to start the firewall script again later?
if so, pls do
iptables -P OUTPUT ACCEPT
iptables -F OUTPUT
and try to telnet in from remote, watching /var/log/messages.

OK when i log in locally it says
login(pam_unix) [2061] session opened for xxxxxx
and shows me log out also...

but i tried connecting from outside, and it showed nothing .. and no connection was established

Jay

Ok, add these rules to improve the logging..
iptables -t nat -A PREROUTING -p tcp --dport 22:23 -j LOG --log-prefix "nat_in "
iptables -I INPUT -p tcp --dport 22:23 -j LOG --log-prefix "INPUT_in "

Ok i added those and still cant connect.. I was messing with Firestarter and opened up 23 and it still doesnt work...
I am frustrated beyond belief..
maybe my server is not set up right... wanna try that?
Jay (runnin outta ideas)

You must be able to see the packets in the /var/log/messages file before doing any more on the RH box.
The PREROUTING log entry will catch the packet as it first arrives in the box, proving that they are arriving ok.

If there's nothing in the logs, we have to go back to the router...

An even look at the possibility that your ISP is blocking some of the common server ports. You can use ANY port number to connect from the outside, make the router pass it ok and just redirect it to 23 once it gets to your box ok.

You are telnetting from an outside location, so check that it can connect ok to another site... (just to prove beyond doubt)

OK so lets say i try to set it at port 5555 from my router... how would i have my rh box recognize port 5555 and throw it to port 23...
Jay

SUCCESSS!!!!!!!!!!

Thanks YOU SO MUCH>> Ended up being my router blocking that port out...

I cant thank you enough for helping me out.. only to run into another stupid problem...
[root@server bin]# redhat-config-users
/usr/share/redhat-config-users/redhat-config-users: line 4: 1945 Segmentation fault /usr/bin/python2.2 /usr/share/redhat-config-users/redhat-config-users.py

I get that error when i try to add a users... I click on the add user button, nothing happened.. so i typed it in terminal.. and i get that error message..
Any clue??
Jay