Telnet should be disabled, and you should use SSH. Telnet sends password in plain text, and 'crackers/hackers' can obtain these passwords easily compared to SSH, and then takeover your dedicated web server.

[1] Type: pico -w /etc/xinetd.d/telnet 
[2] Change the disable = no line to 
disable = yes. 
[3] CTRL+x, then y then enter to save the file. 
[4] Restart xinted with: 
/etc/rc.d/init.d/xinetd restart