Have you read:
TS flow chart
http://www.cisco.com/en/US/tech/tk713/tk507/technologies_tech_note09186a00800b4130.shtml

general config docs
http://www.cisco.com/en/US/tech/tk713/tk507/technologies_tech_note09186a00800b4131.shtml
http://www.cisco.com/en/US/tech/tk713/tk507/technologies_configuration_example09186a0080094333.shtml?referring_site=bodynav


'debug ppp authentication' and 'debug ppp negotiation' are your friends.
Matt


On Sat, Sep 21, 2013 at 8:53 AM, Christian Schröder
<[email protected]> wrote:
> Hi all,
>
>
> I have one question about PPP CHAP authentication where I don't find any 
> documentation explaining the following in detail.
>
> Suppose we have two routers R7 and R8 connected directly via Back2Back serial 
> and an encapsulation of PPP.
>
> As far as I understand the following applies:
> For the successful of a mutual CHAP authentication the following 
> preconditions should match.
> 1. R7 knows of a password used for its authentication against R8
> 2. R8 knows R7s password to check for successful authentication
> and vice versa.
>
> I thought for Point 1 the configuration line "ppp chap password …" is used
> And for Step 2 a normal username/password line is needed like in the example 
> below.
>
> Interestingly, this does not work until I uncomment the lines preceded with 
> an exclamation mark
> where the password for the router itself is configured.
> Now, I am confused about the relation between the three passwords per side
> ("username REMOTEROUTER password PW", "username THISROUTER password PW", "ppp 
> chap password PW").
>
> Why is it necessary to specify them all?
>
>
> Cheers,
> Christian
>
>
> #### On R7:
> username R8 password ipexpert
> !username R7 password ipexpert
>
> interface Serial0/0/0
>  ip address 192.168.11.5 255.255.255.252
>  encapsulation ppp
>  clock rate 2000000
>  ppp authentication chap
>  ppp chap password ipexpert
>
>
>
>
> #### On R8 :
> username R7 password ipexpert
> !username R8 password ipexpert
>
> interface Serial0/0/0
>  ip address 192.168.11.6 255.255.255.252
>  encapsulation ppp
>  ppp authentication chap
>  ppp chap password ipexpert
>
>
>
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