DEFAULT Auth-Type := MS-CHAP Fall-Through = 1 Thats what it is set too, should it be something else?
Also, do you know how to have pppd use Client side PEAP? Maybe I can skip MS-CHAP and use PEAP for both PPTP and 802.1X - List info/subscribe/unsubscribe? See http://www.freeradius.org/list/users.html