Doing dialup in Lion and getting nowhere fast.

I'll post the log at the end but what I've tried so far is using a Panther based G5 mac which can't connect. PAP fails but the server, I believe, is using MSCHAP so I created a etc/ppp/options file with 'require-mschap-v2' and it still will only attempt PAP authent. SO, I tried a MBP with Lion and a Zoom 3095 USB mini-modem and am getting a different error train as shown. This one seems to have a fit with the LCP handshake with the target server and doesn't appear to get anywhere close to the authent stage. I can try on a Snow Leopard based MBP that I have as a backup and see if the problems again take a different tack... I had heard that dial up on a Mac has challenges at times but I did not expect this...

Now, the log (I left the phone number in case someone wants to have a go at it themselves (be kind)):

Mon Dec 26 18:02:38 2011 : CCLWrite : AT\13
Mon Dec 26 18:02:38 2011 : CCLMatched : OK\13\10
Mon Dec 26 18:02:38 2011 : CCLWrite : AT&FE0V1&C1&D2\N3S95=45S0=0\13
Mon Dec 26 18:02:38 2011 : CCLMatched : OK\13\10
Mon Dec 26 18:02:38 2011 : Dialing *70,,12313314333
Mon Dec 26 18:02:38 2011 : CCLWrite : ATDT*70,,12313314333\13
Mon Dec 26 18:03:22 2011 : CCLMatched : CONNECT
Mon Dec 26 18:03:22 2011 : CCLMatched : 28800
Mon Dec 26 18:03:22 2011 : Communicating at 28800 bps.
Mon Dec 26 18:03:22 2011 : CCLMatched : \10
Mon Dec 26 18:03:25 2011 : CCLExit: 0
Mon Dec 26 18:03:25 2011 : Serial connection established.
Mon Dec 26 18:03:25 2011 : using link 0
Mon Dec 26 18:03:25 2011 : Using interface ppp0
Mon Dec 26 18:03:25 2011 : Connect: ppp0 <--> /dev/cu.usbmodem24680241
Mon Dec 26 18:03:26 2011 : sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0x7c41bfa7> <pcomp> <accomp>]
Mon Dec 26 18:03:29 2011 : sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0x7c41bfa7> <pcomp> <accomp>]
Mon Dec 26 18:03:32 2011 : sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0x7c41bfa7> <pcomp> <accomp>]
Mon Dec 26 18:03:35 2011 : sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0x7c41bfa7> <pcomp> <accomp>]
Mon Dec 26 18:03:38 2011 : sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0x7c41bfa7> <pcomp> <accomp>]
Mon Dec 26 18:03:41 2011 : sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0x7c41bfa7> <pcomp> <accomp>]
Mon Dec 26 18:03:44 2011 : sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0x7c41bfa7> <pcomp> <accomp>]
Mon Dec 26 18:03:47 2011 : sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0x7c41bfa7> <pcomp> <accomp>]
Mon Dec 26 18:03:50 2011 : sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0x7c41bfa7> <pcomp> <accomp>]
Mon Dec 26 18:03:53 2011 : sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0x7c41bfa7> <pcomp> <accomp>]
Mon Dec 26 18:03:56 2011 : LCP: timeout sending Config-Requests
Mon Dec 26 18:03:56 2011 : Connection terminated.
Mon Dec 26 18:03:56 2011 : CCLWrite : +++
Mon Dec 26 18:03:58 2011 : CCLWrite : ATH\13
Mon Dec 26 18:03:58 2011 : CCLMatched : OK\13\10
Mon Dec 26 18:03:59 2011 : CCLWrite : AT&F\13
Mon Dec 26 18:03:59 2011 : CCLMatched : OK\13\10
Mon Dec 26 18:03:59 2011 : CCLExit: 0
Mon Dec 26 18:03:59 2011 : Serial link disconnected.

This Lion system does not have an options file. I will try that but am I wrong that it's not getting that far in the process to care about authentication protocol?