I'm new to this group so, HI GUYS!

Problem:
Having a problem with our LAN where the telnet server seems to max out at 64 connections, but we have 100+ users. I've been looking for a good how-to to increase the number, but can't find one. Has anyone out there seen this b4, or has any idea how to fix it? We run RH6.2.1 (VA Enhanced) with a 2.2.14 kernel