Public bug reported:

I am connecting to an ISA2000 box at work and the same settings worked
fine in Dapper.

Using interface ppp0
pptpconfig: monitoring interface ppp0
Connect: ppp0 <--> /dev/pts/1
CHAP authentication succeeded
MPPE 128-bit stateless compression enabled
Cannot determine ethernet address for proxy ARP  **** seems to be the problem
pptpconfig: restoring routing and DNS configuration
pptpconfig: routing and DNS configuration restored
local  IP address 10.1.128.137
remote IP address 10.1.128.128
pptpconfig: pppd process exit status 0 (started)
pptpconfig: stopped

** Affects: pptp-linux (Ubuntu)
     Importance: Undecided
         Status: Unconfirmed

-- 
Proxy Arp error and an unusable connection
https://launchpad.net/bugs/64529

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