telnet insufficient memory

Hi,
I’ve NT 4.0 terminal server(sp5) machine.to connect to linux machine i connect from nt4 using telnet. but Telnet does not work at all.
This is what happens:
1. Telnet
2. Hit the “Run” button…
goes through the motions
– send login id, password to server and receives reply… (No errorshere)
– Just when it is about to display the telnet window, I get an popup window with
the “Insufficient Memory” error.
I checked my memory consumption using the performance meter for NT. I have
192 MB of RAM,
it is only using 121MB before XStart, and went up to 123 MB when I started
XStart (but did not run)
There should be no reason why I get this error.
Has anybody experienced a similar problem? Any info/suggestions on what to
try next would be
greatly appreciated.
Regards,