Alright!! After many many months of frustration with what I thought was a
problem with ppp encap, it turned out to be something else.
As Stuart correctly pointed me to this url (which I have no idea why I
did not look it up earlier) the problem lies with using LDN along with
the SPID #'s. Thank you Stuart for this one.

I tested it first using just plain HDLC, then with plain PPP, then added
ppp auth chap, then ppp chap hostanme and then with finally what I
presumed to be the culprit, ppp multilink. But lo behold!! all of these
worked with NO problem when the LDN # is not specified along with the
SPID #.

Here is my config:

Current configuration : 455 bytes
!
interface BRI0
 ip address 9.9.9.1 255.255.255.0
 encapsulation ppp
 ip ospf network broadcast
 ip ospf demand-circuit
 dialer map ip 9.9.9.2 broadcast 5553000
 dialer load-threshold 1 either
 dialer-group 1
 isdn switch-type basic-ni
 isdn spid1 0555100001
 isdn spid2 0555200001
 cdapi buffers regular 0
 cdapi buffers raw 0
 cdapi buffers large 0
 ppp authentication chap
 ppp chap hostname backup
 ppp chap password 7 121A061902
 ppp multilink
end

R8#ping 9.9.9.2

Type escape sequence to abort.
Sending 5, 100-byte ICMP Echos to 9.9.9.2, timeout is 2 seconds:
!!!!!
Success rate is 100 percent (5/5), round-trip min/avg/max = 36/38/40 ms
R8#

Hope this helps others like me with similiar problems

>From: "Stuart Potts" >Reply-To: "Stuart Potts" >To: [EMAIL PROTECTED]
>Subject: RE: Isdn error with PPP - Why always?? [7:63255] >Date: Tue, 18
Feb 2003 16:34:19 GMT > >For more information; >
>http://www.cisco.com/warp/public/129/bri_invalid_spid.html > >regards >
>/Stuart > >-----Original Message----- >From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED]]On Behalf Of >MADMAN >Sent: 18 February
2003 15:06 >To: [EMAIL PROTECTED] >Subject: Re: Isdn error with PPP -
Why always?? [7:63255] > > >try debug isdn q931, this may give you some
more info. > > Dave > >Cisco Nuts wrote: > > Hello, Just set up basic
Isdn b/w 2 routers using the default hdlc encap > > and was working
perfectly fine till I changed the encap to ppp, ppp auth > > chap, ppp
multilink and ppp chap hostname R7. Then it just stopped > > working :-
out this msg. on the screen:R8-G# > > 4d19h:
%ISDN-4-INVALID_CALLEDNUMBER: Interface BR0, Ignoring call, LDN > > and
Called Party Number mismatch I looked to see if the called number had > >
changed even though I had not touched it. It is still valid and so are >
> the spids. R8-G#ri b0 > > Building configuration...Current
configuration : 353 bytes > > ! > > interface BRI0 > > ip address 9.9.9.1
255.255.255.0 > > ip ospf demand-circuit > > dialer idle-timeout 90 > >
dialer map ip 9.9.9.1 broadcast 5553000 > > dialer load-threshold 1
outbound > > dialer-group 1 > > isdn switch-type basic-ni > > isdn spid1
0555100001 5551000 > > isdn spid2 0555200001 5552000 > > R8-G#sh is st >
> TEI > > Global ISDN Switchtype = basic-niter Age Seq# C > > Layer 1
Status: > > ACTIVE > > Layer 2 Status: > > TEI = 123, Ces = 1, SAPI = 0,
State = MULTIPLE_FRAME_ESTABLISHED > > TEI = 124, Ces = 2, SAPI = 0,
State = MULTIPLE_FRAME_ESTABLISHED > > TEI 123, ces = 1, state = 5(init)
> > spid1 configured, spid1 sent, spid1 valid > > Endpoint ID Info: epsf
= 0, usid = 1, tid = 1 > > TEI 124, ces = 2, state = 5(init) > > spid2
configured, spid2 sent, spid2 valid > > Endpoint ID Info: epsf = 0, usid
= 3, tid = 1 > > Layer 3 Status: > > 0 Active Layer 3 Call(s) > >
CCB:callid=801C, sapi=0, ces=1, B-chan=1, calltype=DATA > > Active dsl 0
CCBs = 1 > > The Free Channel Mask: 0x80000002 > > Total Allocated ISDN
CCBs = 1 I am beginning to guess that the problem is > > a HARDWARE one
with the ISDN switch being the culprit. I guess as usual I > > need to
give it rest for a couple of hours and start it again for this to > >
work with just HDLC encap. To think that I was told that the Merge > >
switch was the Rolls Royce of ISDN switches when I paid a "million" $$ >
> for it last year :-(But if any one has any suggestions/advice, I would
> > gratefully appreciate it.Thank you.Sincerely,CN > > > >
------------------------------------------------------------------------
> > > > STOP MORE SPAM with the new MSN 8 and get 2 months FREE* >--
>David Madland >CCIE# 2016 >Sr. Network Engineer >Qwest Communications
>612-664-3367 > >"You don't make the poor richer by making the rich
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