Quick solution: try using Tftpd32 for Telnet file retrieval
I encountered this same problem.
After late-night puzzling, I thought I had double-checked everything: including HTTP server, ping verification (both ways) and disabling Firewall... a simple solution was found:
I had been using HFS HTTP File Server, which worked fine during SSH file retrieval - but did not work for retrieval via Telnet.
Starting up Tftpd32 worked sweetly first time.
Good luck my friends, Lxs
- Fon 2100 v23b -