I have been working on a problem and would like to share the fix I found it looks like others have had simular problems in the past. I have two routers with BRI-U's going into a Adtran 550. Everything comes up, but on the called router I get encapsulation failed when I ping and do a "debug ip packet'. This is normally a layer 2 issue like needing the "frame-relay map ip" statemnts. Anyway i could not find why the packet wouldn't go out the BRI interace if you show "ip route" the ip address of the calling router is in the route table. After searching Cisco I found that if you enable "ppp authentication chap" it will give the layer 2 mapping to the called router. That worked perfect, just thought I would share.
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