Windows Server 2003 has the Telnet disabled by default (and so good that it does!)
To have the Telnet service running on Windows Server 2003 follow the next steps:
You can also modify start state and start it from a Command Prompt console by using the following command:
sc config TlntSvr start= auto and sc start TlntSvr or net start TlntSvr
The Telnet server requires NTLM authentication by default. To deactivate this and use only password authentication, use the tlntadmn command:
tlntadmn config sec=-NTLM
Also, switching to streams mode may make display easier for Unix/Linux clients. Do this with the following command:
tlntadmn config mode=stream