I know that i can use telnet to connect, but can I get out into the linux environment too?
Writing network exposed services can be a dangerous game, as any bugs can expose you to remote exploits. If you're using some kinder language (such as perl, python, or php, or whatever--other than C/C++/pascal and the like in which buffer-overflows are more likely to crop up) you likely have less with which to concern yourself. So yes, there's always the possibility of a security breach due to some obscure scenario you never considered, and that could allow access.
If you intend to proceed, you can wrap things fairly tightly by making a chroot jail in which the app can't escape. It certainly makes matters more difficult for an attacker. This would be particularly easy if you just have a few configuration files and your main executable--no need to have access to all sorts of other software (ls, cat, etc).
Lastly, you may want to wrap things in a ssh tunnel as passwords are sent plain-text when using a generic telnet connection. This may be something about which you don't care, but it's always nice to respect the privacy wishes of those visiting your mud. (grins)
Hope this helps,
-tim
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