Sounds like your vty (telnet) sessions are all tied up..
Try this..
Connect to console..
rtr1#sho users
Line User Host(s) Idle Location
1 vty 0 jonesmic 172.x.x.x 1w0d 172.x.x.x
* 2 vty 1 jonesmic idle 00:00:00 172.x.x.x
Interface User Mode Idle Peer Address
rtr1#clear line vty 0
[confirm]
[OK]
As you can see I cleared an old hung session..
Then you might want to set the exec-timout under line vty 0 4 to a shorter period..
example;
conf t
line vty 0 4
exec-timeout 20
(sets timeout to 20 minutes)
---Mike