Based on this
thread over at LAVA, it looks like the example given there didn't help. There's not really something specific about telnet. You send a string and wait for a response. In the example, did you try removing the end-of-line that gets appended to the command? Perhaps your instrument doesn't like that. What is your instrument and what does its documentation say?
For debugging, depending on how adept you are, you can try to see what is happening by using a packet sniffer program like Wireshark. You can have it running, connect to your instrument using Hyperterminal (I'm assuming that's what you were using when you said you launch telnet), and see what the strings going back and forth are. Then, you can do the same with the LabVIEW code and you can see what the differences are.