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Terminal

There is a terminal equivalent. First you have to Jailbreak (which there are many instructions for floating around the forums). Then, use the installer.app from jailbreaking. This will allow you to install OpenSSH directly from installer.app. Or, you can install the BSD subsystem and Term-vt100 for direct terminal input on the Touch. Hope that helps.
 
In my experience, I have been able to SSH (if this is an option for you) from the iPod Touch to the computer science lab on campus using OpenSSH from Installer. I'm not sure if Telnet is available :/
 
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