> > telnet passes and converts in as i see. 
please look

Script started on Tue Jan 30 09:22:34 2001
$echo $DISPLAY
:0.0
$telnet localhost
Trying 127.0.0.1...
Connected to localhost.
Escape character is '^]'.

NetBSD/i386 (wojtek.from.pl) (ttypd)

login: wojtek
Password:
Last login: Tue Jan 30 09:21:11 2001 from localhost
Copyright (c) 1996, 1997, 1998, 1999, 2000
        The NetBSD Foundation, Inc.  All rights reserved.
Copyright (c) 1980, 1983, 1986, 1988, 1990, 1991, 1993, 1994
        The Regents of the University of California.  All rights reserved.

NetBSD 1.5 (local.netbsd) #8: Mon Jan 29 23:27:37 CET 2001

Welcome to NetBSD!

$echo $DISPLAY
wojtek.from.pl:0.0
$logout
Connection closed by foreign host.
$exit

Script done on Tue Jan 30 09:22:48 2001