Now we are able to execute commands via telnet to localhost directly from the phone (no longer need for computer- you can mod no matter where you are!). Thanks for khalid for the tutorial and dion for finding it

Motorola ROKR E2

1. Download the following libraries:
2. Unpack (it's archive - you can use winrar or other archivator) to the root folder of the memory card (/mmc/mmca1/)
3. Download MidpSSH and install it (it is a java application). Give it full permissions (optional)
4. Telnet to the phone (from the computer) and type one after another:
# export LD_PRELOAD=/mmc/mmca1/
# . /home/native/.profile
# /usr/SYSjava/kvm -launch xxxxx
Where xxxxx is the number of MidpSSH in /mmc/mmca1/.system/java/DownloadApps/
5. Start MidpSSH on the phone and set the following settings:
Alias - telnet
Host - localhost
Type - Telnet
6. Save it and enjoy telnet from the phone to the phone :)

For easier use you can write yourself a bash script:

export QTDIR=/usr/lib/ezx
cd /mmc/mmca1/
export LD_PRELOAD=/mmc/mmca1/
. /home/native/.profile
exec /usr/SYSjava/kvm -launch xxxxx

Note: You need to start inetD application before following all steps!