What is the difference between Telnet and SSH?

SSH (or Secure Shell) is a protocol that can be used to log into a remote machine (your[ Virtual] Server) and provide secure encrypted communications between your Virtual Server and your local computer. All of the commands you would use in a Telnet client, you can use in an SSH client. The only difference is that the communication is made via encrypted channels to and from your Virtual Server.

The main difference between a SSH telnet cleint and 'normal' telnet client is that SSH contains automatic data encryption, whereas telnet does not. SSH also provides the facility to tunnel other connections through the existing encrypted TCP connection.

Thats my interpretation of it, but there could be more to it :)

SSH is pretty much just a secure version of telnet.