you have to make sure the inetd process is running.
how it works is the file /etc/inetd.conf contains a list of services that can be invoked like ftp, telnet, samba services and so on. poke around with the file and make sure that telnet is there.
this file is used by the inetd process which allows you to run the services defined in the file. so do a ps -ef | grep inetd and you should see something like this ...
root 172 1 0 Nov 23 ? 0:00 /usr/sbin/inetd -s
then you need to check out /etc/services and make sure telnet has an available port to run out of. telnet should be tcp/23. make sure there isn't a # in front of telnet in any of these files.
once the files are modified and saved you need to restart the inetd process. you can either do this by going to /etc/init.d and running inetsvc stop then inetsvc start, or you can do a kill -HUP 172 (172 being the process ID of my inetd process shown above. yours will most likely be different)
from your win2k workstation you could always just pop a dos box and run telnet from there. START - RUN - CMD then at the prompt run telnet machinename
you have resolution set up yeah? try telnetting to the ip address if the machine name doesn't work. if this is the case then you have name resolution issues so you will be about to embark upon a crash course in dns