Ever since upgrading to Windows 7, I've had a problem with escaping from a telnet session from within console.exe. It doesn't matter if the shell is cmd.exe or powershell.exe. I launch telnet to connect to a server (e.g. "telnet sourceforge.net 80"). After connecting, I hit "Ctrl+]" to escape to the telnet admin prompt so I can disconnect (with 'quit'). I do briefly see the normal telnet admin prompt, but immediately, the screen clears and I'm left with a blank console window that's unresponsive. The only way I've found to terminate the session is to close the console window. This behavior is repeatable and seen every time since upgrading to Windows 7. I'm using Windows 7 32-bit and Console 2.0 144.
If I use cmd.exe or powershell.exe without console.exe, I am able to exit to the admin menu normally.