diff --git a/plugins/org.eclipse.tm.terminal.connector.telnet/src/org/eclipse/tm/terminal/connector/telnet/connector/TelnetConnection.java b/plugins/org.eclipse.tm.terminal.connector.telnet/src/org/eclipse/tm/terminal/connector/telnet/connector/TelnetConnection.java
index 93a24906275..fdc23785705 100644
--- a/plugins/org.eclipse.tm.terminal.connector.telnet/src/org/eclipse/tm/terminal/connector/telnet/connector/TelnetConnection.java
+++ b/plugins/org.eclipse.tm.terminal.connector.telnet/src/org/eclipse/tm/terminal/connector/telnet/connector/TelnetConnection.java
@@ -270,7 +270,7 @@ public class TelnetConnection extends Thread implements TelnetCodes {
 		height = newHeight;
 
 		if (sizeChanged && remoteIsTelnetServer && localOptions[TELNET_OPTION_NAWS].isEnabled()) {
-			Integer[] sizeData = { new Integer(width), new Integer(height) };
+			Integer[] sizeData = { Integer.valueOf(width), Integer.valueOf(height) };
 
 			localOptions[TELNET_OPTION_NAWS].sendSubnegotiation(sizeData);
 		}
@@ -418,6 +418,7 @@ public class TelnetConnection extends Thread implements TelnetCodes {
 			// TELNET protocol data.
 
 			byte inputByte = rawBytes[byteIndex];
+			int ubyte = inputByte & 0xFF;
 
 			switch (telnetState) {
 			case STATE_INITIAL:
@@ -427,7 +428,7 @@ public class TelnetConnection extends Thread implements TelnetCodes {
 					// It's not an IAC code, so just append it to
 					// processedBytes.
 
-					processedBytes[nextProcessedByte++] = rawBytes[byteIndex];
+					processedBytes[nextProcessedByte++] = inputByte;
 				}
 				break;
 
@@ -489,7 +490,7 @@ public class TelnetConnection extends Thread implements TelnetCodes {
 				default:
 					// Unrecognized command! This should never happen.
 					Logger.log("processTelnetProtocol: UNRECOGNIZED TELNET PROTOCOL COMMAND: " + //$NON-NLS-1$
-							inputByte);
+							ubyte);
 					telnetState = STATE_INITIAL;
 					break;
 				}
@@ -500,36 +501,36 @@ public class TelnetConnection extends Thread implements TelnetCodes {
 			// local options.
 
 			case STATE_WILL_RECEIVED:
-				Logger.log("Received WILL " + localOptions[inputByte].optionName() + "."); //$NON-NLS-1$ //$NON-NLS-2$
-				remoteOptions[inputByte].handleWill();
+				Logger.log("Received WILL " + localOptions[ubyte].optionName() + "."); //$NON-NLS-1$ //$NON-NLS-2$
+				remoteOptions[ubyte].handleWill();
 				telnetState = STATE_INITIAL;
 				telnetServerDetected();
 				break;
 
 			case STATE_WONT_RECEIVED:
-				Logger.log("Received WONT " + localOptions[inputByte].optionName() + "."); //$NON-NLS-1$ //$NON-NLS-2$
-				remoteOptions[inputByte].handleWont();
+				Logger.log("Received WONT " + localOptions[ubyte].optionName() + "."); //$NON-NLS-1$ //$NON-NLS-2$
+				remoteOptions[ubyte].handleWont();
 				telnetState = STATE_INITIAL;
 				telnetServerDetected();
 				break;
 
 			case STATE_DO_RECEIVED:
-				Logger.log("Received DO " + localOptions[inputByte].optionName() + "."); //$NON-NLS-1$ //$NON-NLS-2$
-				localOptions[inputByte].handleDo();
+				Logger.log("Received DO " + localOptions[ubyte].optionName() + "."); //$NON-NLS-1$ //$NON-NLS-2$
+				localOptions[ubyte].handleDo();
 				telnetState = STATE_INITIAL;
 				telnetServerDetected();
 				break;
 
 			case STATE_DONT_RECEIVED:
-				Logger.log("Received DONT " + localOptions[inputByte].optionName() + "."); //$NON-NLS-1$ //$NON-NLS-2$
-				localOptions[inputByte].handleDont();
+				Logger.log("Received DONT " + localOptions[ubyte].optionName() + "."); //$NON-NLS-1$ //$NON-NLS-2$
+				localOptions[ubyte].handleDont();
 				telnetState = STATE_INITIAL;
 				telnetServerDetected();
 				break;
 
 			case STATE_SUBNEGOTIATION_STARTED:
 				Logger.log("Starting subnegotiation for option " + //$NON-NLS-1$
-						localOptions[inputByte].optionName() + "."); //$NON-NLS-1$
+						localOptions[ubyte].optionName() + "."); //$NON-NLS-1$
 
 				// First, zero out the array of received subnegotiation butes.
 
@@ -608,7 +609,7 @@ public class TelnetConnection extends Thread implements TelnetCodes {
 
 						receivedSubnegotiation[nextSubnegotiationByteIndex - 1] = 0;
 
-						int subnegotiatedOption = receivedSubnegotiation[0];
+						int subnegotiatedOption = receivedSubnegotiation[0] & 0xFF;
 
 						localOptions[subnegotiatedOption].handleSubnegotiation(receivedSubnegotiation,
 								nextSubnegotiationByteIndex);
@@ -636,7 +637,7 @@ public class TelnetConnection extends Thread implements TelnetCodes {
 					Logger.log("SUBNEGOTIATION BUFFER FULL!"); //$NON-NLS-1$
 					ignoreSubnegotiation = true;
 				} else {
-					Logger.log("Recording subnegotiation byte " + (inputByte & 0xff)); //$NON-NLS-1$
+					Logger.log("Recording subnegotiation byte " + ubyte); //$NON-NLS-1$
 
 					receivedSubnegotiation[nextSubnegotiationByteIndex++] = inputByte;
 				}
diff --git a/plugins/org.eclipse.tm.terminal.connector.telnet/src/org/eclipse/tm/terminal/connector/telnet/connector/TelnetOption.java b/plugins/org.eclipse.tm.terminal.connector.telnet/src/org/eclipse/tm/terminal/connector/telnet/connector/TelnetOption.java
index c1d781f580a..9aae825a40b 100644
--- a/plugins/org.eclipse.tm.terminal.connector.telnet/src/org/eclipse/tm/terminal/connector/telnet/connector/TelnetOption.java
+++ b/plugins/org.eclipse.tm.terminal.connector.telnet/src/org/eclipse/tm/terminal/connector/telnet/connector/TelnetOption.java
@@ -262,7 +262,7 @@ class TelnetOption implements TelnetCodes
 	 *         parameter <i>option</i>.
 	 */
 	public String optionName() {
-		return optionNames[option];
+		return optionNames[option & 0xFF];
 	}
 
 	/**
@@ -524,7 +524,7 @@ class TelnetOption implements TelnetCodes
 				break;
 			}
 
-			// Tell the remote endpoint our terminal type is "ansi" using this sequence
+			// Tell the remote endpoint our terminal type is "xterm" using this sequence
 			// of TELNET protocol bytes:
 			//
 			//    IAC SB TERMINAL-TYPE IS x t e r m IAC SE
@@ -565,7 +565,7 @@ class TelnetOption implements TelnetCodes
 			//    IAC SB NAWS <width-highbyte> <width-lowbyte> <height-highbyte>
 			//    <height-lowbyte> IAC SE
 
-			byte[] NAWSData = { TELNET_IAC, TELNET_SB, TELNET_OPTION_NAWS, 0,
+			final byte[] NAWSData = { TELNET_IAC, TELNET_SB, TELNET_OPTION_NAWS, 0,
 					0, 0, 0, TELNET_IAC, TELNET_SE };
 			int width = ((Integer) subnegotiationData[0]).intValue();
 			int height = ((Integer) subnegotiationData[1]).intValue();
@@ -579,12 +579,6 @@ class TelnetOption implements TelnetCodes
 					.log("sending terminal size to remote endpoint: width = " + width + //$NON-NLS-1$
 							", height = " + height + "."); //$NON-NLS-1$ //$NON-NLS-2$
 
-			// This final local variable is a hack to get around the fact that inner
-			// classes cannot reference a non-final local variable in a lexically
-			// enclosing scope.
-
-			final byte[] NAWSDataFinal = NAWSData;
-
 			// Send the NAWS data in a new thread.  The current thread is the display
 			// thread, and calls to write() can block, but blocking the display thread
 			// is _bad_ (it hangs the GUI).
@@ -593,7 +587,7 @@ class TelnetOption implements TelnetCodes
 				@Override
                 public void run() {
 					try {
-						outputStream.write(NAWSDataFinal);
+						outputStream.write(NAWSData);
 					} catch (IOException ex) {
 						Logger.log("IOException sending NAWS subnegotiation!"); //$NON-NLS-1$
 						Logger.logException(ex);