Hi Slawomir,
> "[pppd]: Serial line is looped back."
This means that ppp packets your machine sends are received
unchanged - one can also say mirrored to it.
> and connection is closed.
>
> What is going on?
Don't know, may be a PAP authentication problem, but I suggest you
to have a look at /etc/var/log/messages.
And set your chat program to verbose mode to get info about the
dialling process. Also put the debug option into your /etc/ppp/options
to get more info about the authentication process.
Regards
Tom
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