pppd not able to authenticate using pap-secrets

[Soumyadip Modak <soumyadip@softhome.net>]

I'm trying to use kppp to dial in to my isp. Problem is, even though the
username and password are stored in pap-secrets file, pppd is unable to
use it. /var/log/syslog says:

Apr 10 07:29:04 modak pppd[967]: The remote system is required to
authenticate itself
Apr 10 07:29:04 modak pppd[967]: but I couldn't find any suitable secret
(password) for it to use to do so.
Apr 10 07:29:04 modak pppd[967]: (None of the available passwords would
let it use an IP address.)

I tried man pppd, but i lost my way inside. Can anyone please give me
any pointers on how to get pppd to authenticate itself.

/etc/ppp/pap-secrets is owner+group readable and writable. Owner and
group both root, and I'm running kppp as root.

Thanks
-- 
Soumyadip Modak <soumyadip@softhome.net>