Description of problem:telnetd is broken.
Example login follows:

[caf@omen ftp]$ telnet omen1
Trying 192.168.1.13...
Connected to omen1.
Escape character is '^]'.
Fedora release 18 (Spherical Cow)
Kernel 3.7.4-204.fc18.x86_64 on an x86_64 (10)
men login: 
           assword: 
                    ast login: Mon Jan 28 07:26:45 from omen3
BASH_PROFILE
on Jan 28 16:56:44 PST 2013
bash: /usr/games/fortune: No such file or directory
tyname=/dev/pts/10	DISPLAY=omen.com:3.0	ERM=xterm-256color	 23 rows  79 columns



Version-Release number of selected component (if applicable):
18   rawhide

How reproducible:


Steps to Reproduce:
1.enable telnetd
2.telnet to system
3. perform login
  
Actual results:
shown above, missing parts of output stream

Expected results:
normal output

Additional info:
The host system may crash as a result is a file transfer is attemptred.

On some connections operation is normal - it happens randomly but often.