No passord for telnet User with the following procedure :
a) created a user "manolo"
b) added a password
# passwd manolo
c) opened /etc/shadow and deleted the password manually for the user.
# vi /etc/shadow
d) deleted the password manually:
e) then telnet using manolo to my host.
# telnet -l manolo 10.33.8.105
Managed to log in with out prompting for a password .
Please be Advised that I recommend ssh with shared keys or telnet through an ssh tunnel