Gabriel,

try temporarily disabling the linux firewall AKA iptables. Do in a
terminal an:
service iptables stop
,,on the ltsp server.
Then try doing the ctl-alt-f2
Does the thin client appear to "try" and get to a bash prompt then you see
the  "accesss is denied" error,or is this what you are seeing in the
system logs?
Are you sure that you have a telnet daemon running on the server?
Do  in a terminal an :
ps aux|grep telnet      and
ps aux|grep telnetd
and see if it returns a running telnet server process.

Take Care,
Barry Cisna

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