how to free unused pty terminal

Hi,

I am new to networking so please bear with me. On my MVL system, I am
using telnetd telnet server with this configuration in
/etx/xinetd.d/telnet file:

service telnet
{
flags = REUSE
socket_type = stream
wait = no
user = root
server = /sbin/telnetd
log_on_failure += USERID
disable = no
}

and my /etc/xinetd.conf is shown below:

defaults
{
instances = 60
log_type = SYSLOG authpriv
log_on_success = HOST PID
log_on_failure = HOST
cps = 25 30
}

includedir /etc/xinetd.d

I can successfully connect remotely to my system using telnet. My
problem is, everytime I closed the telnet client application without
calling the 'exit' command (i am using varaterm and windows command
line prompt), it seems that the pty terminal is not freed. My telnetd
was configured to allow 5 client connections at a time. If I am
connecting 5 telnet clients and then i closed one connection without
'exit' command, i can't make another connection and my system goes
weird because it hangs up after a minute or two. If i run the
'netstat' command, there are only 4 connections reported. But if i
closed a connection using the 'exit' command, i can successfully
re-establish a new connection.

Please help. I really don't have any idea where to look.

Thanks,
nick_faye