MP> So this issue only affects telnet connections where you telnet to one
MP> system and then can telnet to the next, like with the mystic matrix menu
MP> or the SBBS "door" that lets you telnet to another system?

Yes, my example is the Mystic matrix menu and then it doing a telnet to
another BBS from the menu.  

If you telnet directly to the BBS, binary transfers work fine.  Using the
matrix menu to the BBS, binary transfers don't work.  Text based Zmodem
transfers do work, however.

- Mark

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