When you go to append a PAP username/secret the dialog box that comes up is titled "Edit Chat Entry" and askes for "Expect" and "Send" which I believe should be "Username" and "Secret". This confused some people.
You are right that it is mislabeled. For future use (starting with Red Hat Linux 6.1), this will be fixed by the rp3 tool, which has a much better approach to the whole problem of setting up PAP/CHAP/login.