Windows 7 Telnet Issue

I am having issues using Telnet to connect from one Windows 7 machine to another Windows 7 machines via my internal network. So far I have tried and configured the following:

1. Disabled Windows Firewall on both machines
2. Control Panel > Programs and Features > I have turned on the Telnet client on one machine and the Telnet Server on the other machine.
3. I can ping from one machine to the other and vice versa.
4. Have also tried using Telnet with the computer name instead of the IP address…

Still cannot connect. Is there possibly some local GP setting I am missing (I am going to research this next…)

Any help would be greatly appreciated.