Windows User Account telnet login

I do not know much about windows user accounts. I currently have a win7 machine with telnet server and client features enabled.
If I look under user accounts I see that Bob is Administrator with password xyz.

From XP machine I telnet to win7.
username: Bob
password: xyz
%login invalid

How to solve this?

Before anyone jumps on me for using telnet, let me explain. I am studying for CCNA-security. I have Virtual Box setup with a Win-XP, Win7 and Win2008 all in different subnets with firewalls disabled. These three virtual machines are connected to interfaces in a  routing simulator (gns3) that contains virtual cisco ASA firewall.  I want to practice with the cisco ASA firewall with as many different types of protocols as possible (telnet, tftp, ftp, http, etc). but have no idea how windows user accounts work (yet). At the moment the Cisco ASA firewall is not yet in place in the simulator, but I do have basic connectivity between all three virtual windows machines and want to test getting as many protocols running between them, so here I ask about telnet.
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JohnBusiness Consultant (Owner)Commented:
Telnet is not installed by default on Windows 7. Also make sure you are not trying to log into "administrator" which is disabled by design.

Here is a TechNet article to enable Telnet.
David Johnson, CD, MVPOwnerCommented:
1) you need a telnet server on the machine you want to connect to
2) username= machinename\username for the machine you want to connect to in a non-domain/workgroup environment

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LinkAuthor Commented:
Ok, I didn’t realize that the login was machinename\username, that was most likely the problem, however at the moment both side are reporting “could not open connection to the host, on port 23: Connect failed”.
To solve and get Win7 to log into XP I needed to:

1.      Start the telnet service on XP (currently does not start automatically after reboot)
             a.      Control Panel - Administrative Tools – Services-Telnet
2.      Change User Bob who is Administrator to use a password
             a.      Control Panel user accounts – Bob – Change password (xyz) – Reboot and use password to login
3.      To see what the current machine name is:
             a.      Right click Computer – Properties- User Profiles - Name:machinename\username
4.      From Win7 machine (with telnet client\server enabled?)
                        username: virtualxp\Bob
                        password: xyz
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LinkAuthor Commented:
I meant to split the points between you two, clicked multiple solutions but it didn't seem to work. David's answer was really the one (username= machinename\username for the machine you want to connect to) that mostly solved.
LinkAuthor Commented:
My comment add some extra details to the solution
JohnBusiness Consultant (Owner)Commented:
@TGarey123  - Thanks for following up.
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