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It is not just telnet, it is probably everything which
uses the libc internal resolver.
Try eg "getent hosts www.aka.fi".

I didn't check which characters are allowed at which
position, so the appended patch is likely nonsense,
but it shows where the behaviour originates.

best regards
Matthias



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--- res_comp.c.~1.6.~	Mon May 24 11:38:02 2004
+++ res_comp.c	Fri Dec 15 17:31:13 2006
@@ -160,7 +160,7 @@ dn_skipname(const u_char *ptr, const u_c
  * is not careful about this, but for some reason, we're doing it right here.
  */
 #define PERIOD 0x2e
-#define	hyphenchar(c) ((c) == 0x2d)
+#define	hyphenchar(c) ((c) == 0x2d || (c) == 0x5f)
 #define bslashchar(c) ((c) == 0x5c)
 #define periodchar(c) ((c) == PERIOD)
 #define asterchar(c) ((c) == 0x2a)

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