Telnet login not allowed

[Riccardo Mottola <riccardo.mottola%libero.it@localhost>]

Hi,

I cannot telnet to my box anymore (after one of the upgrades probably). 
I usually use rlogin which continues to work, so I wonder what is wrong 
and how can I debug it.

if I "telnet localhost" it works, thus the daemon is running, if I 
telent from the outisde, I get an authentication error (telnetd: 
Authorization failed) before even trying to input my password.

In authlog I see an inbound connection but no errors/warnings.

My inetd.conf line is:
l
telnet          stream  tcp     nowait  root /usr/libexec/telnetd    
telnetd -a valid

and has been so since ages I guess.

Thank you,

Riccardo