Problems using Telnet over LAN with Proxy Server

[Laen]

First off forgive my ignoricne when it comes to networking, This is my first attempt at a home LAN.
Ok this is the issue I am having, I have 3 boxes running win 98, connected through a hub, one of the boxes I have the DSL modem on (a 1Ghz system)and I set up a proxy server (spoon proxy) to allow the other two computers access to the net. the other computers can access webpages and pop 3 mail but I cannot for the life of me get telnet to work on either of the two boxes not directly connected to the DSL. I have tried running some mud clients and plugging in the socks 5 settings as they appear in the proxy software with no luck, I have also tried an aplication that is supposed to automaticly point programs through the sock5 proxy (Socks Cap V2) and still have had no luck, anyone got any ideas on where Im screwing up and how to fix it?

Thanks In Advance

 

[Laen]

Ok I seem to have fixed my own problem If I plug in the ip adress instead of the domain name I can telnet with no problems what so ever. Im happy I got it to work but that leaves me with two questions I would love to get anwsers for...

1. Why does entering the IP addy instead of domainname.net #### Work?

2. What did I do wrong in setting up the network so it doesn't work and is there a way to fix it?

Thanks in Advance for the Info