Problems when connecting to localhost

[caeconsulting]

Ciao a tutti.
My problem is:

[piero@cae-linux ~]$ telnet cae-linux
Trying 127.0.0.1...
telnet: connect to address 127.0.0.1: Connection refused
telnet: Unable to connect to remote host: Connection refused
[piero@cae-linux ~]$
[piero@cae-linux ~]$ xterm -display cae-linux:10.0
xterm Xt error: Can't open display: cae-linux:10.0
[piero@cae-linux ~]$ xterm -display cae-linux:0.0
xterm Xt error: Can't open display: cae-linux:0.0
[piero@cae-linux ~]$

Can someone help me?

Fedora 2.6.19-1.2895.fc6

[marcrblevins]

Do you have anything in /etc/hosts.* files? One is allow and the other is deny

Is telnet-server installed?
chkconfig telnet on

Show the following file:
/etc/xinetd.d/telnet

My copy, telnet is only open interally, not outside.
[root@kiriyamablevins xinetd.d]# cat telnet
# default: on
# description: The telnet server serves telnet sessions; it uses \
# unencrypted username/password pairs for authentication.
service telnet
{
flags = REUSE
socket_type = stream
wait = no
user = root
server = /usr/sbin/in.telnetd
log_on_failure += USERID
disable = no
only_from = 192.168.1.0/24
}