TicTacToe Telnet server in Python
I am not particularly a python expert but can offer some feedback from a fairly generic perspective.


There are no useful (plain English) comments until line 105. There is definitely room to improve the commenting of this code.
Unless StackExchange is affecting the formatting, this doesn't appear to adhere to PEP 8 (the definitive Python style guide). For example, you are using three spaces per indentation level, not four. 
As @200_success spotted in a comment, you are calling main() twice at the end: is this intentional? I cannot understand why this would be.
foobar() does not sound like a sensible name for a function: it gives me absolutely no clue as to what the function's purpose is.
What is the significance of "WordsWeNeverSee"? This might be well documented in the Telnet library but it might be helpful to offer a brief explanation here, so somebody can follow this code without knowing that library well.  Failing that, at least a reference to the main documentation would be good.
Your main game engine architecture smells funny to me. When main() first calls readBoard(), this can then lead to readBoard() being called recursively, and/or control passing to foobar() which then calls readBoard() again. This feels like it might lead to a deeply-nested call stack. Without following the logic through carefully I have no idea what the rationale is for this, but it seems unlikely to be the best design approach. 
Relatedly, your key functions readBoard() and selectMove() take no input and return no output. They are operating on data structures that exist globally, aside from their function scope - i.e. they are having side effects. This also seems unlikely to be the best approach; I'm not really qualified to say what the best or most-pythonic way might be, but a more object-oriented approach could be one way to go. 
readBoard() seems to have two blocks of identical code, inside the first if and following elif. In other words, you're saying: if len(tLines)==13, then do some stuff; if len(tLines)==14, then do the same stuff; else do something different.  Can you see the quick way to simplify this code?