I am able to reproduce this on edgy with:
ii  gnome-system-t 2.15.5-0ubuntu Cross-platform configuration utilities

Easier info: run network-admin , choose modem, then properties.
And do sudo cat   /etc/ppp/pap-secrets to check info there.


** Changed in: system-tools-backends (Ubuntu)
       Status: Unconfirmed => Confirmed

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PPP username/passwords that contain hashes get corrupted
https://launchpad.net/bugs/14824

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