diff --git a/package/base-files/files/bin/login.sh b/package/base-files/files/bin/login.sh
index ff5d3660e..a64c84e1e 100755
--- a/package/base-files/files/bin/login.sh
+++ b/package/base-files/files/bin/login.sh
@@ -1,18 +1,16 @@
 #!/bin/sh
-# Copyright (C) 2006 OpenWrt.org
+# Copyright (C) 2006-2010 OpenWrt.org
 
-grep '^root:[^!]' /etc/passwd >&- 2>&-
-[ "$?" = "0" -a -z "$FAILSAFE" ]  &&  
-{
-    echo "Login failed."
-    exit 0
-} || {
+if grep -qs '^root:[^!]' /etc/passwd /etc/shadow && [ -z "$FAILSAFE" ]; then
+	echo "Login failed."
+	exit 0
+else
 cat << EOF
  === IMPORTANT ============================
   Use 'passwd' to set your login password
   this will disable telnet and enable SSH
  ------------------------------------------
 EOF
-}
+fi
 
 exec /bin/ash --login
diff --git a/package/busybox/files/telnet b/package/busybox/files/telnet
index 082aba7e9..b8823379b 100755
--- a/package/busybox/files/telnet
+++ b/package/busybox/files/telnet
@@ -1,16 +1,24 @@
 #!/bin/sh /etc/rc.common
-# Copyright (C) 2006 OpenWrt.org
+# Copyright (C) 2006-2010 OpenWrt.org
 START=50
 
+has_root_pwd() {
+	local pwd=$([ -f "$1" ] && cat "$1")
+	      pwd="${pwd#*root:}"
+	      pwd="${pwd%%:*}"
+
+	test -n "${pwd#!}"
+}
+
 start() {
-	if 	[ \! -f /etc/passwd ] || \
-		awk -F: '/^root:/ && ($2 != "") && ($2 !~ /\!/) {exit 1}' /etc/passwd 2>/dev/null || \
-		( [ \! -x /usr/sbin/dropbear ] && [ \! -x /usr/sbin/sshd ] )
-	then \
+	if ( ! has_root_pwd /etc/passwd && ! has_root_pwd /etc/shadow ) || \
+	   ( [ ! -x /usr/sbin/dropbear ] && [ ! -x /usr/sbin/sshd ] );
+	then
 		telnetd -l /bin/login.sh
 	fi
 }
 
 stop() {
-	killall telnetd
+	killall telnetd 2>/dev/null
 }
+