It was actually a simple fix, really.

I edited a font and added the extended graphics for it based on this table.
CP437

If anyone will ever Telnet someday and want IBM extended graphics, make sure you pick this font up since you won't find it anywhere else on the net. I used FontLab Studio in case someone might be interested on how it was done.

Then I edited this file after installing the konwert debs found in the first post:
/usr/share/konwert/aux/charsets/cp437

and added this one line
<5> ♣

The rest is pretty much fluff, including installing Qwerty's border fix for Xterm found here:
Border Fix

Along with using one of my custom keyboards found here:
Keyboard Collection

There's also a few other commands like removing the toolbar, removing the cursor, stopping the pop up hildon keyboard from showing up, extending the background lighting while idle, and setting the dimensions of Xterm, but since most could care less, I'm happy to leave the rest of this thread as is.

EDIT:
Oh crappers, forgot to mention probably the most important find in all of this.

Before I was using the command:
telnet [telnet address] | konwert cp437-utf8
Which is super buggy and crashes to pieces without notice.

Now I use this instead:
filterm ascii-ascii cp437-utf8 telnet [telnet address]

It's super fast and never once has it crashed on me.