Just a couple of thoughts, I've not used djbdns but generally speaking... If you are trying to test your typicaly DNS functions then telnet isn't that much use. Telnet will establish a TCP connection but your name server will be using UDP, typically.
You would be better off testing your server using something like dig, so say
Code:
dig www.somesite.com @192.168.1.1
clearly with 192.168.1.1 replaced with the ip or name of your name server. Tell me more about your delegation problems.
HTH
Jamie