By default the RedHat 7.2 installation will not allow a remote user to connect to the system using TELNET for security reasons. It is probably safest to leave the system like this and use an encrypted connect facility such as SSH. However if you do wish to allow TELNET access then you need to do the following.
Install the telnet-server RPM from the RedHat installation disk #1 either using a suitable package manager to use the following command line:
rpm --install --replacefiles --nodeps /mnt/cdrom/RedHat/RPMS/telnet-server-*.i386.rpm
This installation creates a file telnet in the directory /etc/xinetd.d . Edit this file and change the line
disable = yes
disable = no
Restart xinetd by the command