the standalone kernel assigns itself two static ip addresses 192.168.1.252 and 192.168.0.252, this is hard coded in the kernel and cannot be changed. However the kernel also tries to get a dynamic ip address from a dhcp server in the LAN, so you could check if your dhcp server (most of the time a router) has assigned an ip to you D2 network2 when the standalone kernel is loaded and then use that to let the telnet client connect (use connect button in telnet client to manual enter an ip to be used to connect).
If there is no dhcp server in the LAN then you need to change your LAN settings to use 192.168.1.xxx or 192.168.0.xxx and use the static ip's mentioned above. I do not recommend this last setup as the kernel may give up after 5 attempts to get a dynamic ip and then my become not responsive.
In reality using LAN's without dhcp server is very uncommon, almost everyone has a dhcp server running.