I have rooted my phone, but why can't I Telnet?

I have a T-Mobile G1 and rooted it using AndRoot. I've confirmed that I have root by using Wireless Tethering, I get all the required request superuser permission dialogues. However when I go to the Telnet application and try to telnet it refuses to let me, I get: >Error While connecting to server localhost/127.0.0.1:23 - Connection Refused. I've tried various different connection strings (e.g. just 127.0.0.1, 0.0.0.0) I read that you might need to reboot the phone after rooting so I did and then confirmed again that I still have su by using wireless tether and superuser permissions app. Is there anyway I can get this working as I'd like to flash Amon Ra's Recovery mod and start playing around with the Roms again.