Erm... your code runs here.

bronto@cooper:/tmp$ perl test.pl 
problem connecting to "192.168.1.1", port 23: connection timed-out at 
+test.pl line 5
[download]

Hence your code works (or it is likely to work). So the question is: have you Net::Telnet properly installed?

--bronto

PS: BTW, if you don't know how to check if you have it, try perl -MNet::Telnet -e 'exit 0', and watch errors in case it dies: they will tell.

PS2: (or PS/2 :-) if you don't have it, just perl -MCPAN -e 'install Net::Telnet', then retry your script.

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update: are you sure you don't have a "fake" Net::Telnet in the way?