Is it possible to have a proxification tunnel like this, by using TELNET instead of SSH, with any of chilkat's products? Thank you.
From what I've learned, Telnet is a shell in to a remote machine. SSH is a secure shell in to a remote machine. SSH has added functionality. One of these is the Dynamic Port Forwarding allowing one to setup a Proxy, also known as a Poor mans VPN.
With that, I doubt you can do what you are asking.