--- a/plugins/mod_admin_telnet.lua	Sun Jun 09 17:00:26 2013 +0200
+++ b/plugins/mod_admin_telnet.lua	Mon Jun 10 14:35:35 2013 +0200
@@ -973,7 +973,7 @@
 	local username, host = jid_split(jid);
 	if not hosts[host] then
 		return nil, "No such host: "..host;
-	elseif um.user_exists(username, host) then
+	elseif not um.user_exists(username, host) then
 		return nil, "No such user";
 	end
 	local ok, err = um.set_password(username, password, host);