Not gettting 250-STARTTLS in ehlo reply

I have enabled TLS but still only getting 250-AUTH LOGIN PLAIN. 

sjaredj@shine:~$ telnet bart 25
Trying 10.111.45.55...
Connected to bart.xxxxxxx.com.
Escape character is '^]'.
220 bart.xxxxxxx.com ESMTP
ehlo test
250-bart.xxxxxxxx.com
250-PIPELINING
250-SIZE 12582912
250-AUTH LOGIN PLAIN
250 8BITMIME


Below are some output to question I have seen within the list

Compiled with these parms: (I have used a slew of different values for 
TLS* these are just my latest)
------------------------------------------------------------------------------------------------------------------------------------
LDAPFLAGS=-DALTQUEUE
LDAPLIBS=-L/usr/local/lib -lldap -llber
LDAPINCLUDES=-I/usr/local/include
TLS=-DTLS_REMOTE -DTLS_SMTPD -DTLSDEBUG
TLSINCLUDES=-I/usr/include/openssl
TLSLIBS=-L/usr/lib -lssl -lcrypto
OPENSSLBIN=/usr/bin/openssl
MNW=-DMAKE_NETSCAPE_WORK
MDIRMAKE=-DAUTOMAILDIRMAKE
HDIRMAKE=-DAUTOHOMEDIRMAKE
SHADOWLIBS=-lcrypt
------------------------------------------------------------------------------------------------------------------------------------

root@bart:/var/qmail/control# ls -la `cat /var/qmail/control/smtpcert`
------------------------------------------------------------------------------------------------------------------------------------
-rw-r----- 1 qmaild qmail 2002 2009-04-01 10:43 /var/qmail/control/cert.pem
------------------------------------------------------------------------------------------------------------------------------------

root@bart:/var/qmail/control# ldd /var/qmail/bin/qmail-smtpd
------------------------------------------------------------------------------------------------------------------------------------
        linux-gate.so.1 =>  (0xffffe000)
        libresolv.so.2 => /lib/tls/i686/cmov/libresolv.so.2 (0xb7f96000)
        libc.so.6 => /lib/tls/i686/cmov/libc.so.6 (0xb7e66000)
        /lib/ld-linux.so.2 (0xb7fb1000)
------------------------------------------------------------------------------------------------------------------------------------

qmail-smtp.rules
------------------------------------------------------------------------------------------------------------------------------------
127.:allow,RELAYCLIENT="",RBLSMTPD="",QMAILQUEUE="/var/qmail/bin/qmail-queue"
:allow,NOPBS="",SMTPAUTH="TLSREQUIRED",QMAILQUEUE="/var/qmail/bin/qmail-queue",LOGLEVEL="9"
------------------------------------------------------------------------------------------------------------------------------------

root@bart:/var/qmail/control# cat /service/qmail-smtpd/run
------------------------------------------------------------------------------------------------------------------------------------
#!/bin/sh
exec 2>&1
#
# SMTP service
#
QMAIL="/var/qmail"
ME="`head -1 $QMAIL/control/me`"
CONCURRENCY=${CONCURRENCY:=50}
QUSER="qmaild"

PATH="$QMAIL/bin:$PATH"

# source the environemt in ./env
eval `env - PATH=$PATH envdir ./env awk '\
        BEGIN { for (i in ENVIRON) \
                if (i != "PATH") { \
                        printf "export %s=\"%s\"\\n", i, ENVIRON[i] \
                } \
        }'`

# enforce some sane defaults
QUSER=${QUSER:="qmaild"}
PBSTOOL=${PBSTOOL:="$QMAIL/bin/pbscheck"}

if [ X${NOPBS+"true"} = X"true" ]; then
        unset PBSTOOL
fi

exec \
        envuidgid $QUSER \
        tcpserver -v -URl $ME -x$QMAIL/control/qmail-smtpd.cdb \
            ${CONCURRENCY:+"-c$CONCURRENCY"} ${BACKLOG:+"-b$BACKLOG"} 0 
smtp \
        $PBSTOOL \
        $QMAIL/bin/qmail-smtpd /var/qmail/bin/auth_smtp /usr/bin/true
root@bart:/var/qmail/control#                    
------------------------------------------------------------------------------------------------------------------------------------

Here is my test and resulting log when I try using STARTTLS
------------------------------------------------------------------------------------------------------------------------------------
sjaredj@shine:~$ telnet bart 25
Trying 10.111.45.55...
Connected to bart.xxxxxxxx.com.
Escape character is '^]'.
220 bart.xxxxxxxx.com ESMTP
ehlo test
250-bart.xxxxxxxx.com
250-PIPELINING
250-SIZE 12582912
250-AUTH LOGIN PLAIN
250 8BITMIME
STARTTLS
502 unimplemented (#5.5.1)


@4000000049d3a43c24ae5ba4 tcpserver: status: 1/50
@4000000049d3a43c24ae6b44 tcpserver: pid 5965 from 10.111.45.30
@4000000049d3a43c24bebef4 tcpserver: ok 5965 
bart.xxxxxxxxxxx.com:10.111.45.55:25 
shine.xxxxxxxxxxx.com:10.111.45.30::38976
@4000000049d3a43c24bed27c qmail-smtpd 5965: connection from 10.111.45.30 
(shine.xxxxxxxxxxx.com) to bart.xxxxxxxxxxx.com
@4000000049d3a43c24bee21c qmail-smtpd 5965: enabled options: max msg 
size: 12582912 smtp-auth-tls-required qmailqueue /var/qmail/bin/qmail-queue
@4000000049d3a4571982efec qmail-smtpd 5965: remote ehlo: test
@4000000049d3a46e0efb3a5c qmail-smtpd 5965: unrecognized command
------------------------------------------------------------------------------------------------------------------------------------

I created self signed cert that I use for imaps and ldap, I have also 
tried doing the make cert and using that one

Any one have ideas of where I have gone wrong.

Thanks,
Jared