I do not see anything in the config that is posted that would explain these symptoms. So I have a few questions.
- where are you telnetting from (what is the source address)?
- is the connection from your machine to the router on the same subnet or do you go through some other network devices? Perhaps the output of traceroute from your machine to the router would be helpful?
- which address on the router are you attempting to telnet to?
- is it possible that some security policy in the network or on your machine is denying the telnet?