Ok. Replying to my own post to report workaround...
I still think this is very strange behaviour.

On Wed, 9 Oct 2002, Jessica Mayo wrote:
> Symptom: No login prompt (telnet hangs)
> 
> /home/user> telnet 203.47.39.xx
> Trying 203.47.39.xx...
> Connected to 203.47.39.xx.
> Escape character is '^]'.
> 
> Red Hat Linux release 6.1 (Cartman)
> Kernel 2.2.12-20smp on an i686          
> _
> 
> 
> Cause:
> 'login' process spawned by telnetd dies and sits there as a zombie.
> 
> 
> Solution:?

It turns out that the problem was telnet sending the contents of my
DISPLAY variable to the other end. if I unset the DISPLAY variable, then
everything works fine.
My workaround was to alias telnet to 'env - telnet' , which starts telnet
with no environment at all. Nasty, but it works. :(

-- Jess.
(Everything with a Grin :)

-- 
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