LOL!! MattCallow wins the internet for today. I posted this question all over the place including many Linux forums and IRC channels where people either didnt answer or said stuff like "your bash is really broken" ...
I tried using hyperterminal and it worked. Originally I was using telnet.exe so I will try to out how to adjust its settings.
ThanksI owe you one.
edit: For windows Telnet.exe
unset crlf
Line feed mode - Causes return key to send CR
and
set crlf
New line mode - Causes return key to send CR & LF
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