Ok, I've got it all done.

The /etc/hosts.deny file is set to ALL:ALL
The /etc/host.allow file is set to:
sshd: <ipaddress 1> <ipaddress 2>
in.ftpd : <ipaddress 1> <ipaddress 2>
popper : KNOWN

The problem I was having was that I was trying to ssh into the box without sshd in the allow file. Yes that is very simple. You can not use in.telnet.d if you are loggin in with ssh.

360

If you are using telnet because you need access from windows, you can still use ssh. Just get ssh for windows, I use igaly ssh, it works great and it's free. You can also tunnel thru it for things like vnc. Even though you lock your machine people can still see everything you send across telnet.

I had to change:
popper : KNOWN
to
Popper : ALL

Some poeple were being denied by the server.

So Now I have:
/etc/hosts.deny
ALL : ALL

/etc/hosts.allow
sshd: <all the ip address I want to allow seperated by a space>
in.ftp : <all the ip address I want to allow seperated by a space>
popper : ALL

Have fun!