You most likely have a firewall blocking access to the machine or the telnet daemon isn't running. You should be able to tell if it's running with the command ps -ax |grep telnet - if the telnet deamon shows up, you'll know it's actually running.
Since you installed "ALL the packages", I can't tell you what to look for as far as firewalls go - you'll need to look for yourself.
After that, please see my reply here:
http://www.getlinuxonline.com/yabbse...d=1074;start=0


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