Well, I'm not sure how the rest of the telnet clients work but when I use the windows telnet program, i log on to the server, put in my user name and then it asks me for my password. On my machine, you can't see the ***** where you put your password. and remember, it's case sensitive. Try to log back in and don't type anything after you press enter when u insert yout user name. after that u should be asked for your password. enter your password EXACALLY how u did when u signed up. You probably won't see the ****** but after you type it in press enter and you should be logged into your shell.
Hope this helps,
Remote_Access_