The -nt is to start it in the console mode and the -m is starting it when creating for the first time the userlist file, when you have enabled (as in set to 1) either the learn-users or open-telnets in the conf file.
Once the game is over, the king and the pawn go back in the same box.
looks like you uploaded the conf to your shell with some ftp program from windows with the wrong settings.. or perhaps edited it in some funky windows text editor.. Try editing the conf file with a unix text editor.. ( vi,pico,mg,emacs..etc) and edit it right on the shell perhaps..