Now I understand your problem. You have to ways to go:
The telnet-server now will prompt you for login/passwordCode:> tlntadmn stop > tlntadmn config sec=-NTLM+passwd > tlntadmn start
Second, you create by hand the TelnetClients group and add users to it (follow ).
Then, you change the local policies according to. You reenable NTLM (+NTLM).
Hopefully, this will work.
I would go with the first approach. But remember, that telnet is mainly a tool
for educative purposes.
How to add a restricted user? Did I confuse you by my bad choice of words? I meant
a limited user. See .