Hi -
You'd be much better off using sshd instead of telnetd:
1. "telnet isn't secure and you should't really be using it"
<= You've probably heard this before...
... and it *isn't* untrue!
2. "ssh" comes with lots of options to restrict users, restrict IPs,
assign logins to alternate shells (e.g. Restricted Bash "rbash" instead of "bash") and confine them to "chroot" directories.
For example:
http://www.howtoforge.com/chrooted-s...l-debian-lenny
3. Besides, "ssh" is more secure and better supported in modern OS's.
IMHO ..