I don't have an answer, but I find that when I launch a cmd window in the normal way telnet works, but when I launch a cmd window from launchy telnet does not work. This seems to depend on whether I am running a 64 bit cmd.exe or a 32 bit one.
dir C:\windows\system32\telnet.exe
is found when I and in the standard cmd window but not the launchy cmd window.
The standard cmd window is running dir C:\windows\system32\cmd.exe. The launch cmd window is running c:\Windows\SysWOW64\cmd.exe; even though it launched a shortcut that explicitly asked for C:\windows\system32\cmd.exe
I have solved it for now with a cmd shortcut explicitly calling
C:\Windows\WinSxS\amd64_microsoft-windows-commandprompt_31bf3856ad364e35_6.3.9600.16384_none_7bcb26c7ee538fe3\cmd.exe
but that may well fail if I get updates so the 'real' 64 bit cmd.exe moves.
set path
in the command prompt and give the result here?telnet.exe
present in%windir%\system32
?