Buffer overflow in libtelnet/encrypt.c in telnetd in FreeBSD 7.3 through 9.0, MIT Kerberos Version 5 Applications (aka krb5-appl) 1.0.2 and earlier, Heimdal 1.5.1 and earlier, GNU inetutils, and possibly other products allows remote attackers to execute arbitrary code via a long encryption key, as exploited in the wild in December 2011.
The product copies an input buffer to an output buffer without verifying that the size of the input buffer is less than the size of the output buffer, leading to a buffer overflow.