I have experienced some of the same problems.

I have managed to get FTP fully working though (you can rwm the drives using Hyperterminal or similar via the serial port, although I wouldn't have thought this would affect your ability to download via FTP). Download seems to work fine for me.

As far as telnet is concerned, I think the problem is that the debian image does not seem to contain "in.telnetd" which is what is being invoked in response to telnet connections (as specified in /etc/inetd.conf). Anyone know where one can get hold of this?

Warren.