You need to set the "Screen Mode" setting for the BBS to one of the Atari ones. On top of the BBS entry, press F2, then change it to look like this:
Name The Boot Factory (Atari)
Address bfbbs.no-ip.com
Connection Type Telnet
TCP Port 23
Username
Password <none>
System Password <none>
Screen Mode Atari
Hide Status Line Yes
Download Path /home/admin/
Upload Path /home/admin/
Log File
Log Transfers Normal
Log Telnet Cmds Normal
Append Log File Yes
Comm Rate Current
ANSI Music BANSI Style
Font Atari
MouseNet settings:
Name MouseNet (Atari)
Address atari-bbs.kicks-ass.net
Connection Type Telnet
TCP Port 23
Username stephen hurd
Password ********
System Password <none>
Screen Mode Atari XEP80
Hide Status Line Yes
Download Path /home/admin/
Upload Path /home/admin/
Log File
Log Transfers Normal
Log Telnet Cmds Normal
Append Log File Yes
Comm Rate Current
ANSI Music BANSI Style
Font Atari