Why dont you just apply an access list on the vty lines ? If that is what you are trying to do...line vty 0 15ip access class 15 inaccess-list 15 permit 192.168.1.x or whatever network or hosts you want to allow to telnet into the router
How experianced are you with cisco gear ? You cannot telnet into a router if the router has no enable password set.You need to connect to the router using the console port, go in and set an enable secret password.Do a show ip interface brief to see y...
Maybe your router is bogged down with NAT translations.Issue the "show ip nat translations" cmd and see what you get. Chances are there will be heaps there.Then try clearing them with the clear ip nat translations * cmd