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Open System Command:
http://192.168.1.1/Main_AdmStatus_Content.asp

Enter:
/usr/sbin/utelnetd -d
and click Refresh button.
You should now be able to Telnet to the router without any...

http://192.168.1.1/Main_AdmStatus_Content.asp

Type commands and press Refresh button to execute (NOT Enter, pressing Enter will refresh page)

I tried it with my WL-500W and it says "can't connect", there is no log. :(

Works fine for me.
"USB storage: ext2 fs mounted to /tmp/harddisk/part0"