Cygwin installation breaks ALL telnet clients

[David Greenhouse]

We are seeing an issue where after installing Cygwin and including the
inetutils package in order to get telnet access, none of the telnet
clients on the system will work properly (not Cygwin's, Microsoft's,
PuTTY, nothing). The issue persists even after removing Cygwin.

In the Cygwin telnet client, the output is the following:
$ telnet rd00d20
Trying 172.28.48.32...
Connected to rd00d20.
Escape character is '^]'.
Connection closed by foreign host.

(In other words, the connection is opened and immediately closed.)

We're thinking it's not a server-side problem because 1) machines
without Cygwin can telnet to these servers just fine and 2) the affected
machines cannot telnet to ANY server. Also, we've reproduced this issue
on more than one machine and version of Windows (both XP and Vista). We
also have verified that all ports are open.

Any suggestions on how to fix telnet on these machines?

Thanks,
David

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