....but this time it says telnet refused
So it doesn't mention "connection timed out", correct?
Did you use the correct login credentials?
User: root
Password: giveit2me
Note do not use capitals in linux user and passwords are case sensetive.
If you did that correct and connection is still refused then it could be that the kernel is not ready yet with initializing the device. Did you remove all disks and leave only one in most lefthand slot seen from the back?