Description of problem:

pppd is set up to accept only CHAP/MS-CHAP authentication type, and 
if remote side cannot authenticate itself using (MS)CHAP, it prints 
the following (full session transcript is in Additional Information):

Oct  3 22:29:46 skynets pppoe-server[30209]: Session 23 created for 
client 00:0d:61:a8:17:90 (192.168.4.32) on eth1 using Service-
Name 'Internet'
Oct  3 22:29:46 skynets pppd[30209]: pppd 2.4.2 started by root, uid 0
Oct  3 22:29:46 skynets pppd[30209]: Using interface ppp5
Oct  3 22:29:46 skynets pppd[30209]: Connect: ppp5 <--> /dev/pts/49
Oct  3 22:29:48 skynets pppd[30209]: peer refused to authenticate: 
terminating link
Oct  3 22:29:48 skynets pppd[30209]: Connection terminated.
Oct  3 22:29:48 skynets pppoe-server[2051]: Sent PADT
Oct  3 22:29:48 skynets pppoe[30210]: read (asyncReadFromPPP): 
Session 23: Input/output error
Oct  3 22:29:48 skynets pppd[30209]: Terminating on signal 15.
Oct  3 22:30:18 skynets last message repeated 242930 times

this excessive logging in accompanied with relevant CPU load.

Version-Release number of selected component (if applicable):

rp-pppoe-3.5-14, ppp-2.4.2-2

How reproducible:

1. For example, in WinXP, uncheck MS-CHAP and CHAP fields and check 
PAP one.
2. Try to connect to PPPoE server running at FC machine.