You were right it was from my client. I tried logging in with Microsoft's telnet client and it worked, and then I tried logging in with Putty and when I changed the connection type to raw it worked.
Thanks!
I did change the script, but when I saw that it doesn't log in the first time I ran the original one and the results are the same. Uploaded with ImageShack.us I have Windows 7 x64 installed. Maybe it's because of my OS?
The hidden password only work once, the second time if you type the password you can see it.
PS. You can only login to the server if you type the password twice, the first time it doesn't work. (bug)
I noticed that the first time you try to login you get the "Access Denied" message. Even if I type the correct password I still get that. It only works the second time.
Is there any way to fix this?