The problem you are having is due to the xinetd daemon.
I had the same problem but it was a while back now... basically you have to tell RedHat 7.2 to look for the telnet and ftp daemons when a request comes in from the network.
It's basically adding a coupld of lines to xinetd.conf (if i remember correctly). Do a man xinetd.conf, look at what's in there then create an xinetd.conf file in /etc and enter your lines for telnet and ftp. Restart xinetd with service xinetd restart and Bpb's yer uncle.
As i say it was a while back that i did this but i'm pretty sure that's the way to crack it.
Welcome to GLO ;D