ppp through rlogin doesn't work

[Nelson Posse Lago fflch - fsl 3704 <nelplago@usp.br>]

     Hi all,
     I'm trying to set up a terminal server with
two linux machines: the first answers the modem (with
mgetty) and opens an rlogin connection to the second;
the second starts pppd. The problem is, there's something
wrong with flow control: telnetting through this link,
for instance, takes some 2 minutes to display the login
prompt.
     I was pointed to a hacked version of rlogin with
better flow control by Miquel van Smoorenburg, but it
didn't solve the problem. Telnet yelds the same problem.
I'm using rlogin -8E in order to get a clean connection
(no asyncmap needed). Anybody has any clues?
     I feel it *might* be due to the ppp being used
as a module; something has changed in the debian kernel
that prevents me from compiling ppp into the kernel,
thanks to bsd_comp. 
     Explaining better: I got debian by ftp, and had
a problem with ppp as a module, so I compiled it into 
thhe kernel. After that, I reconnected to the ftp server
and downloaded it all again. The new kernel package was
probably an updated one, with this "feature". Any solutions?
Thanks already for your time,
Nelson
nelplago@usp.br