telnet is a terminal emulator, meaning you can login to a remote machine and get a command line via port 23. telnet can also access other ports and services and let you send commands to the server, such as a smtp server or pop mail server. ssh allows secure encrypted access to a remote machine via port 22. mostly the difference is the encryption, because the end result of the programs are the same, access to the command line of another machine.
you can do
telnet host.com
which will attempt to connect to the telnet server on the host.com server
you can also do
telnet mail.host.com 25
and it will connect to the smtp server and let you send commands to it.
ssh will only connect to sftp or ssh.
http://www.pcwebopedia.com/TERM/S/SSH.html
http://www.pcwebopedia.com/TERM/T/Telnet.html
those links should give a much better explanation than i did 😉