You should not have any troube running KTelnet. KTelnet is highly configurable, nearly all system dependencies are configurable through the KDE configuration files (ktelnet2rc). There are no hardcoded paths. You can configure all used application paths by adding entries into the configuration file located in ~/.kde2/share/config/ktelnet2rc.
Here is a list of available sections and parameters:
1 [programs] 2 telnet=telnet 3 ssh=ssh 4 rlogin=rlogin 5 xterm=xterm 6 konsole=konsole 7 rxvt=rxvt 8 [common] 9 panelIcon=ktelnet 10 showPasswordHint=true |
For the ssh, rlogin and telnet options you may add further command line options which you generally want to use. This is also the way you can determine whether you want to use ssh1 or ssh2 or using ssh2 with the ssh1 compatibility mode or to say that you never want to use privileged ports just by inserting the entry ssh=/usr/local/bin/ssh -P.