It means the remote system echoed serial characters that PPP sent. This happens when the remote pppd hasn't started and you are sending packets at the login prompt or the shell prompt.
Run through the chat script by hand and see if it really gets you logged in. Bruce -- Bruce Perens K6BP [EMAIL PROTECTED] 510-215-3502 Finger [EMAIL PROTECTED] for PGP public key. PGP fingerprint = 88 6A 15 D0 65 D4 A3 A6 1F 89 6A 76 95 24 87 B3