The service is disabled by default. You can modify start state and start it from the Services applet, or from a console use the following:
sc config TlntSvr start= auto net start TlntSvr
You configure telnet using tlntadmn.exe; tlntadmn has changed from Windows 2000 and now is a command-line stream tool instead of a shell. The following command will set the Telnet server to _not_ require NTLM authentication, and to run sessions in stream mode (both handy for allowing non-Win2k+ clients):
tlntadmn config sec=-NTLM mode=stream
Now connect remotely. If you use a console-mode telnet, you will see the following after connection:
Welcome to Microsoft Telnet Service login: Rincewind password: *=============================================================== Welcome to Microsoft Telnet Server. *=============================================================== C:\Documents and Settings\Rincewind>_