A few things you can try..
1. Under the user setting in the router config page.. see it is set to Password based access instead of user based access.. I have noticed that the custom Kfurge 1.0.7.8 doesn't let you add the user after changing it to user based access.. Once you change it back to password based access.. it'll let you telent into the router.. Wish user based access.. and with no users successfully created (because of a bug).. it wouldn't let you telnet in.
2. What kind of an internet connection do you have? DSL or Cable?
3. Go to the router config.. advanced setting.. and under system.. click on set default.. that way the router will go back to it's default settings.. it'll take a few minutes to do it.. but it'll do it.. I have noticed that this pretty much corrects all minor issues with the router..
4. Whenever you hold the button on the router for 2 seconds and release it.. the router shuts down completely.. but do NOT power it back on immediately.. instead, you can hear the hdd spining down to a complete stop AFTER it has been turned off.. When you switch it on before it has come to a complete stop.. I have noticed that the router doesn't work very well..
5. If no. 3 above doesn't work.. then try reflashing your router with the firmware again.. from the web interface.