As of Win2K, MS updated the stock Windows Telnet client to basically behave exactly like the Unix telnet client (big shock that MS would COPY some other OS!). It's a straightforward, easy to use telnet client which supports ANSI, VT100, and probably other VTxxx terminals as well. By virtue of the fact that Win2K/WinXP Command Prompts support BACKSCROLL, the MS Telnet Client supports BACKSCROLL as well if your Command Prompt has it enabled.
To run the stock telnet Windows telnet client, open up a Command Prompt and type:
telnet <enter>
telnet host <enter>