Hi soma56

Now I understand your problem. You have to ways to go:
First,
Code:
> tlntadmn stop
> tlntadmn config sec=-NTLM+passwd
> tlntadmn start
The telnet-server now will prompt you for login/password

Second, you create by hand the TelnetClients group and add users to it (follow [1]).
Then, you change the local policies according to[2]. 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 [3].

Cheers.


[1] http://opax.swin.edu.au/~bhooper/_CITP0022N/telnet.php
[2] http://support.microsoft.com/default...&Product=winxp
[3]
http://www.microsoft.com/resources/d...unt_types.mspx
http://support.microsoft.com/?scid=h...2Faccounts.asp