Using Labview 8.5, XP, Telnet Line Client, I get the following error 56, TCP Read in Telnet Buffered Read.vi->Telnet Read.vi:3->Telnet Line Client.vi.
I looked up this error which looks to be a Networking error: 56 The network operation exceeded the user-specified or system time limit.
The data does seem to return properly but this has been an ongoing issue with previous Telnet clients we are using.