Hi,

I have set up my KDC and telnet in the same server.

I am trying to telnet from a local PC . This is the output I am getting ..

[sudip@kdcclient root]$ telnet -a -F -x kdc
Trying 192.168.1.3...
Connected to kdc.example.local (192.168.1.3).
Escape character is '^]'.
Waiting for encryption to be negotiated...
[ Kerberos V5 accepts you as ``sudip/admin@EXAMPLE.LOCAL'' ]
[ Kerberos V5 accepted forwarded credentials ]
done.
Password:
Last login: Wed Jun 8 12:36:12 from kdc
[sudip@kdc ~]$

So why it is asking for password ? What I am missing here ?

telnet is not used anymore ( or should not be used) it is insecure

use ssh instead

ssh supports encryption

Thank you for your suggestion John..

But in this case client requirement is telnet only, we cant help

First thing I'd do (since YOU will be responsible for this), is to advise the client properly. Telnet is a bad solution, and should be avoided. If you're not advising your client correctly, then the fault is your own when something goes bad.

If you must use it (and really, there are NO GOOD REASONS in 2011 for using telnet), have you enabled the krb5-telnet section in /etc/xinetd.d, and disabled the standard telnet??
http://aplawrence.com/Linux/enable_telnet.html