diff --git a/telnetd/telnetd.c b/telnetd/telnetd.c
index 6e09ab4..805047d 100644
--- a/telnetd/telnetd.c
+++ b/telnetd/telnetd.c
@@ -192,6 +192,22 @@ main(argc, argv)
 
 	progname = *argv;
 
+	/*
+	 * This initialization causes linemode to default to a configuration
+	 * that works on all telnet clients, including the FreeBSD client.
+	 * This is not quite the same as the telnet client issuing a "mode
+	 * character" command, but has most of the same benefits, and is
+	 * preferable since some clients (like usofts) don't have the
+	 * mode character command anyway and linemode breaks things.
+	 * The most notable symptom of fix is that csh "set filec" operations
+	 * like <ESC> (filename completion) and ^D (choices) keys now work
+	 * in telnet sessions and can be used more than once on the same line.
+	 * CR/LF handling is also corrected in some termio modes.  This 
+	 * change resolves problem reports bin/771 and bin/1037.
+	 */
+
+	linemode=1;	/*Default to mode that works on bulk of clients*/
+
 #ifdef CRAY
 	/*
 	 * Get number of pty's before trying to process options,