maybe you could try putting this in your "/etc/xinetd.d/telnet" file
# default: on
# description: The telnet server serves telnet sessions; it uses \
# unencrypted username/password pairs for authentication.
service telnet
{
disable = no
flags = REUSE
socket_type = stream
wait = no
user = root
server = /usr/sbin/in.telnetd
log_on_failure += USERID
}
---
make sure "flags = REUSE"
and "wait = no"
hope that helps.