My apologies. I did send two returns on telnet. Here is what I get:
I am running perl-5.16.3 under perlbrew and the latest version of Plack 1.0024 and AnyEvent 7.04.
Start : Sat May 4 13:34:41 2013
Its now: Sat May 4 13:34:42 2013
Its now: Sat May 4 13:34:47 2013
Its now: Sat May 4 13:34:52 2013
Its now: Sat May 4 13:34:57 2013
Its now: Sat May 4 13:35:02 2013
Its now: Sat May 4 13:35:07 2013
Its now: Sat May 4 13:35:12 2013
Its now: Sat May 4 13:35:17 2013
Its now: Sat May 4 13:35:22 2013
Its now: Sat May 4 13:35:27 2013
Its now: Sat May 4 13:35:32 2013
Stopping: Sat May 4 13:35:32 2013
And the output is correctly buffered every 5 seconds.