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Linux VPN Server w/ MPPE MPPC Help



Hello,
I have built a Debian VPN server with a 2.6.10 kernel that I intend to
use to support microsoft clients.   I followed the directions at the
following url:

http://gfxcafe.com/VPN%20Howto.html

Now I have this problem:  When I try to connect using a windows
machine, it says
"Error 741: The local computer does not support the required data
encryption type"

lsmod shows that the ppp_mppe_mppc module is loaded, as well as sha1 and arc4

I noticed the following in /var/log/daemon.log

Apr  9 15:26:17 vpn1 pptpd[1629]: CTRL: Client 169.254.65.187 control
connection started
Apr  9 15:26:17 vpn1 pptpd[1629]: CTRL: Starting call (launching pppd,
opening GRE)
Apr  9 15:26:17 vpn1 pppd[1630]: pppd 2.4.3 started by root, uid 0
Apr  9 15:26:17 vpn1 pppd[1630]: Using interface ppp0
Apr  9 15:26:17 vpn1 pppd[1630]: Connect: ppp0 <--> /dev/pts/1
Apr  9 15:26:20 vpn1 pptpd[1629]: CTRL: Ignored a SET LINK INFO packet
with real ACCMs!
Apr  9 15:26:20 vpn1 pppd[1630]: MPPE required, but MS-CHAP[v2] auth
not performed.
Apr  9 15:26:20 vpn1 pptpd[1629]: CTRL: Reaping child PPP[1630]
Apr  9 15:26:20 vpn1 pppd[1630]: Modem hangup
Apr  9 15:26:20 vpn1 pppd[1630]: Connection terminated.
Apr  9 15:26:20 vpn1 pppd[1630]: Connect time 0.1 minutes.
Apr  9 15:26:20 vpn1 pppd[1630]: Sent 0 bytes, received 0 bytes.
Apr  9 15:26:20 vpn1 pppd[1630]: Exit.
Apr  9 15:26:20 vpn1 pptpd[1629]: CTRL: Client 169.254.65.187 control
connection finished

Can someone help me sort out what is going on here?  I cannot tell if
the mppe support is not working, or if there is some other problem. 
One strange behavior I have noticed is this: I tell the windows client
not to require encryption, and then try to connect.  It complains,
since the server requires authentication.  Then I recheck the box to
require encryption and try again, and it works.  I cannot tell at this
point if encryption is happening or not, but I do know that it will
continue to work until I delete the connection and recreate it.  At
this point I will get the same err 741 that I mentioned above.

Any help is hugely appreciated
Chris



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