mldonkey had some changes in 2.04 so the gui doesn't work properly.
There are two majow points:
1) mldonkey has users now, so an update for the login had to take place (done in the current CVS version)
2) mldonkey now features coloured output in telnet, which breaks our system of parsing the output. We'll fix that as soon as possible (it's CeBIT...) and release 0.6.1.
A workaround is writing
"set ansi_term FALSE"
in telnet and everything works fine again ;-)