So I know Telnet is not recommended however it is needed for the application that we are currently using. I have gone ahead and installed telnet on my SME Server and made changes the necessary changes using the following commands.
-yum install telnet-server
-vi /etc/xinetd.d/telnet "changed disabled to no"
-ln -s /etc/rc.d/init.d/e-smith-service /etc/rc.d/rc7.d/S56xinetd
-config set xinetd service TCPPort 23 access private status enabled
-signal-event remoteaccess-update
-/etc/rc.d/rc7.d/S56xinetd start
however i am getting a connection closed by foreign host error.