telnet server config?

I’m having problems setting up a telnet server on an embedded system.

I’ve got TCP/IP setup to the point that I can ping the system.

I run inetd, with the corresponding line in my inetd.conf file of:
telnet stream tcp nowait root /sbin/telnetd in.telnetd -Q

I’ve tried both the tiny TCP/IP stack and the full stack, neither worked.

The symptom is that when I try to telnet in I am prompted for a username and
a password (I have set up a user on my stack as well) and after they are
entered I get the following error:
loginConnection closed by foreign host.

Any help with this is greatly appreciated… I can’t believe I’m the only
person trying to get this set up (especially since the ‘on’ command can’t
span nodes yet) and I don’t see any tech support documents going thru step
by step instructions on how to setup a telnet server, so I think an answer
would definitely benefit the community (I only mention this because I’ve
posed this question, in various forms, several times now).