Hi,
You need to install the telnet-server rpm if it's not already installed. Try 'rpm -qa | grep telnet'. If its not there install that rpm first.
Once you've done that, edit the /etc/xinet.d/telnet file and change 'disable=yes' to 'disable=no'. Then restart the xinetd daemon by '/etc/rc.d/init.d/xinetd restart'. Your telnet server should now work. (i'm assuming there is no firewalling in place here...)
Rgds