The Virtual HTTP or Telnet server provides a predictable authentication point that users can authenticate against. The Pix kicks off the authentication process for HTTP or FTP or TELNET, whether it is directly to the Pix or a remote destination.
Downloadable ACLs from ACS can enhance this authentication by providing authorization for the connection requests on all protocols.
So, these features are complimentary and sometimes the Virtual Telnet may not be necessary if your users can be prompted by going to a certain website.
I've implemented the Virtual Telnet server for a NOC that manages customer's networks. In order to access the particular customer networks (authorized by downloadable ACLs), they first have to telnet to the Pix for authentication.
Another feature released in 6.3.1 that I like is the "per-user-override" that you can add to the end of the "access-group" statements. You may want to look into this command as well.
Hope this helps.
peter