You can use your local Windows user name and password or domain account information to access the Telnet server.
If you do not use the NTLM option for authentication, the user name and password are sent to the Telnet server as plaintext
If you use NTLM authentication, Telnet Client uses the Windows XP security context for authentication, and the user is not prompted for a user name and password. The user name and password are encrypted.
Attempts to log on to the Telnet server using NTLM authentication will fail if the password option is set at User Must Change Password at Next Log on. To log on successfully, you must log on to the server directly, change your password, and then log on through Telnet.
If you connect to a Telnet server using NTLM authentication, you will not be able to access additional network resources because of a limitation of the NTLM authentication. In order to access network resources from a Telnet session, you need to access network drives by providing your user name and password again.