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do you have an '/etc/ppp/pap-secrets' file? I found that pppd would die unexpectedly (code 16 in fact) if that file is not present when running kppp; if you are not using pppd proper, that file can be blank, but it must be present (and only root-readable). Do 'touch /etc/ppp/pap-secrets; chmod 600 /etc/ppp/pap-secrets' and see if that solves it. If you still have problems, try filling the file with correct contents; man pppd for more info.