Unable to Telnet after upgrade 2.0 -> 2.1: Panic!

[Erik van der Meulen <erik@avondel.xs4all.nl>]

I have just performed an apt upgrade according to the manual of my
Debian 2.0 box to go to 2.1. This all seemed to work fairly well, except
now I can no longer connect to my box with telnet. To be more exact, I
can connect, but do not get a login prompt. Connection closed by foreign
host appears after a second or so.
I am in agony, I have 1 telnet open to the box and if I lose that, I'll
need to dig it up and find myself a keyboard and monitor and the like...

Does anyone know of a change in a package that I missed in the upgrade?

Thanks a great deal, I'm quite lost...

--
  Erik van der Meulen <erik@avondel.xs4all.nl>