Slow Linux 2.2.x Telnet?

RelliK asks: "I have a small LAN at home, 4 workstations and a gateway sharing a cable modem. My workstation is running SuSE 6.1 and the gateway is running Debian 2.1. Both machines are using the 2.2.9 kernel. The problem is that telnet and rlogin from my workstation to the gateway is slow to the point of being absolutely unusable. It takes several seconds for a character to appear on the sccreen after I type it. FTP is also jerky: It transfers files fast, but it appears as though it's constanly "hitting speed bumps", so to speak, especially when it's about 95% done. I've tried everything I could think of to fix the problem, but no luck. I'd *greatly* appreciate it if any of you could help me." Now this just sounds downright strange. Does anyone have any ideas as to what's causing this? Click below for more.

Rellik gives more details on his problem:
"I know it is not a network problem. Telnet from other machines to the gateway works fine. It is not a problem with my hardware either. When I telnet from windows it works fine. Also, if I boot the gateway with kernel 2.0.36, it works fine. So it appears as though the two boxes have problems talking to each other when both are running 2.2.x (doesn't seem to matter which since I tried it with 2.2.5 before). Also, if I telnet from my workstation to the outside, bypassing the gateway, it works fine. It also works if I telnet from the gateway to my workstation. And here is the weirdest thing: if I run tcpdump or iptraf while I'm telnet'ing it works fast!! But as soon as I stop them it starts crawling again...

Detailed specs:

My workstation:
Cyrix 6x86PR-200
64 Mb SDRAM
Asus TX97e motherboard
6 gig hd
ATI 3d Pro Turbo video card
PCI ne2000 compatible network card (RealTek chip)
SuSE 6.1 / kernel 2.2.9

The gateway:
AMD 486dx4-100
32 Mb RAM
1.2 gig HD
Trident 1Mb PCI video card
2x PCI ne2000 compatible network cards (RealTek chip)

network: coax ethernet

Thanks for any help in advance!"