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sindi keesan wrote:
>
> On the gateway computer I typed the ipchains lines (three of them 
> including echo) to set up a firewall.  On the other computer I typed
> route add default gw 192.168.1.2 so I could use the gateway computer to go 
> on the internet.  (Neither was needed to telnet between my computers).
> 
> While still telnetted with busybox telnet, I could ping www.grex.org 
> with the gateway computer and also with the other computer, which 
> means both computers were online 

That's what ipchains does.

> (via a telnetd that requires no  password)

telnetd has nothing to do with it.  

> Should I change this so root cannot log in via ttypN or 
> is the firewall enough protection?

The firewall is NOT enough protection for your unauthenticated
telnetd.  It is the worst thing you can run while online.
 
> I typed kill 48 right after testing ping. 

Ping would still have worked after killing telnetd.

Cheers,
Steven