Can't telnet or FTP to linux

sbsys,

 What login id do you use for both session (telnet and ftp)?

Can you ping your server?

You'll get that kind of an error from telnet and ftp if the user's shell as specified in the password file isn't a valid shell. Can you login as that user on the console screen?

I can ping the server and I log as root on the console.

Are the ftpd and in.telnetd daemons running out of inetd?

Are you trying to telnet or ftp in as root? Linux has remote root access disabled by default and that will also cause the "Connection close by foreign host"
Create an ordinary user accout for remote access then use su to gain root privs.

you don't necessarily have ftp server running/installed.
check whether you have ftp server package by 'rpm -aq |grpe ftpd'
Check if ftpd is running, 'ps -alef | grep ftpd' if standalone, or ps -alef|grep inetd' and grep ftpd /etc/inetd.conf'.

The information that I received from both of you has been extremely helpful, but unfortunately, I can only choose one answer.  I would like to thank you both for sharing your knowledge.  It is truly to my regret that I can only send the points to one of you.

Sincerely,
sbsys

Setup again :D

I re-install Linux and now I can logon as anonymous, I can "download" to my PC but when I try to upload I get an error "553 dog.jpg Permission denied [UPLOAD]  Please if anyone wish to answer this, explain it very very simple and in detail.

That's as it should be. Permitting uploads from an anonymous FTP login is considered very dangerous, so it's normally disabled by default. The best solution is to use an ordinary user account for ftp. If you haven't created one for yourself, it's easy enough to do with linuxconf.

I'm going to guess that you might be using RedHat 6.1, correct? Did you install wu-ftp or just anonftp when you re-installed the OS?