Below is my log from messages:
A point to note, I was able to connect from another Windows 98 machine...
May 22 11:38:57 e-smith pptpd[1794]: MGR: Launching /usr/sbin/pptpctrl to handle client
May 22 11:38:57 e-smith pptpd[1794]: CTRL: local address = 192.168.1.1
May 22 11:38:57 e-smith pptpd[1794]: CTRL: remote address = 192.168.1.247
May 22 11:38:57 e-smith pptpd[1794]: CTRL: pppd speed = 460800
May 22 11:38:57 e-smith pptpd[1794]: CTRL: pppd options file = /etc/ppp/options.pptpd
May 22 11:38:57 e-smith pptpd[1794]: CTRL: Client 207.139.34.65 control connection started
May 22 11:38:57 e-smith pptpd[1794]: CTRL: Received PPTP Control Message (type: 1)
May 22 11:38:57 e-smith pptpd[1794]: CTRL: Made a START CTRL CONN RPLY packet
May 22 11:38:57 e-smith pptpd[1794]: CTRL: I wrote 156 bytes to the client.
May 22 11:38:57 e-smith pptpd[1794]: CTRL: Sent packet to client
May 22 11:38:57 e-smith pptpd[1794]: CTRL: Received PPTP Control Message (type: 7)
May 22 11:38:57 e-smith pptpd[1794]: CTRL: 0 min_bps, 0 max_bps, 32 window size
May 22 11:38:57 e-smith pptpd[1794]: CTRL: Made a OUT CALL RPLY packet
May 22 11:38:57 e-smith pptpd[1794]: CTRL: Starting call (launching pppd, opening GRE)
May 22 11:38:57 e-smith pptpd[1794]: CTRL: pty_fd = 5
May 22 11:38:57 e-smith pptpd[1794]: CTRL: tty_fd = 6
May 22 11:38:57 e-smith pptpd[1795]: CTRL (PPPD Launcher): Connection speed = 460800
May 22 11:38:57 e-smith pptpd[1795]: CTRL (PPPD Launcher): local address = 192.168.1.1
May 22 11:38:57 e-smith pptpd[1795]: CTRL (PPPD Launcher): remote address = 192.168.1.247
May 22 11:38:57 e-smith pppd[1795]: pppd 2.4.0 started by root, uid 0
May 22 11:38:57 e-smith pptpd[1794]: CTRL: I wrote 32 bytes to the client.
May 22 11:38:57 e-smith pptpd[1794]: CTRL: Sent packet to client
May 22 11:38:57 e-smith pppd[1795]: Using interface ppp0
May 22 11:38:57 e-smith pppd[1795]: Connect: ppp0 <--> /dev/pts/0
May 22 11:38:57 e-smith pptpd[1794]: Buffering out-of-order packet; got 1 after 4294967295
May 22 11:39:00 e-smith pptpd[1794]: Packet reorder timeout waiting for 0
May 22 11:39:00 e-smith pptpd[1794]: Buffering out-of-order packet; got 2 after 0
May 22 11:39:00 e-smith pppd[1795]: MSCHAP-v2 peer authentication succeeded for username
May 22 11:39:00 e-smith pppd[1795]: found interface eth0 for proxy arp
May 22 11:39:00 e-smith pppd[1795]: local IP address 192.168.1.1
May 22 11:39:00 e-smith pppd[1795]: remote IP address 192.168.1.247
May 22 11:39:01 e-smith pptpd[1794]: Buffering out-of-order packet; got 16 after 14
May 22 11:39:01 e-smith e-smith[1810]: Processing event: ip-up.pptpd ppp0 /dev/pts/0 460800 192.168.1.1 192.168.1.247 pptpd
May 22 11:39:04 e-smith pptpd[1794]: Packet reorder timeout waiting for 15
May 22 11:39:04 e-smith pptpd[1794]: Buffering out-of-order packet; got 17 after 15
May 22 11:39:04 e-smith pppd[1795]: Connection terminated.
May 22 11:39:04 e-smith pppd[1795]: Connect time 0.1 minutes.
May 22 11:39:04 e-smith pppd[1795]: Sent 728 bytes, received 657 bytes.
May 22 11:39:04 e-smith pppd[1795]: Exit.
May 22 11:39:04 e-smith pptpd[1794]: Error reading from pppd: Input/output error
May 22 11:39:04 e-smith pptpd[1794]: CTRL: GRE read or PTY write failed (gre,pty)=(6,5)
May 22 11:39:04 e-smith pptpd[1794]: CTRL: Client 207.139.34.65 control connection finished
May 22 11:39:04 e-smith pptpd[1794]: CTRL: Exiting now
May 22 11:39:04 e-smith pptpd[1536]: MGR: Reaped child 1794