Running Windows 7 Professional, I am unable to connect to client computers on my LAN through Telnet. Telnet server and client functions are enabled, and the Telnet service is running. When I attempt to connect to a client computer, after the password warning prompt, I'm told that Telnet is configured to use NTLM authentication only. So I tried a command prompt, with
tlntadmn config sec +PASSWD
and got "the settings were successfully updated." But the same thing happened (NTLM authentication only) when I tried to Telnet to the client.