I tried to telnet from A- ->B,,,,,Both A and B are running XP Pro and no firewall. On B I created username called jsmith, I added him to "Administrator" group (because there is no group called "TelnetClient" unlike 2000 and 2003 server) I enabled Telnet session on B and I tried to telnet from A to B, I received this message: ,,,,If I typed in "y" I received this error message : If I type in "No": I was able to access the B!!!! : OR,,,,if I typed in: telnet 192.168.0.1 and double click (not single click ),,,(i.e. without waiting to see this message “You are about to send your password information to remote computer in internet zone . This might not be safe. Do you want to send any way [y/n] ?),,,,,I was able to access the B as well. I tried this scenario at lab at work with more than one group (I configured 4 groups , each group of 2 PCs).