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pppd authentication failure, please help... dying to get online

Finally I set my winmodem and it is running, yes... :)
Now it dials the number, does the inital communications and then gives me the 
following error message:
May 23 13:45:07 jms-pc3 pppd[540]: The remote system is required to 
authenticate itself
May 23 13:45:07 jms-pc3 pppd[540]: but I couldn't find any suitable secret 
(password) for it to use to do so.
May 23 13:45:07 jms-pc3 pppd[540]: (None of the available passwords would let 
it use an IP address.)

I don't know what this means. I am sure my password is OK.
I am using kppp and wvdial. In kppp, I have chosen the PAP/CHAT 
authentication. Also, I have left the IP address and Gateway to automatically 
be assigned and my kernel supports PPP and SLIP.
Any input is appreciated.

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