Ok, I think I might be getting somewhere... I found this in the messages log. (I know this is starting to head for bug tracker status)
Dec 1 21:28:53 box1 pptpd[17374]: CTRL: Client 192.168.1.10 control connection started
Dec 1 21:28:53 box1 pptpd[17374]: CTRL: Starting call (launching pppd, opening GRE)
Dec 1 21:28:53 box1 pppd[17375]: Plugin radius.so loaded.
Dec 1 21:28:53 box1 pppd[17375]: RADIUS plugin initialized.
Dec 1 21:28:53 box1 pppd[17375]: pppd 2.4.4 started by root, uid 0
Dec 1 21:28:53 box1 kernel: divert: not allocating divert_blk for non-ethernet device ppp0
Dec 1 21:28:53 box1 pppd[17375]: Using interface ppp0
Dec 1 21:28:53 box1 pppd[17375]: Connect: ppp0 <--> /dev/pts/0
Dec 1 21:28:53 box1 pptpd[17374]: CTRL: Ignored a SET LINK INFO packet with real ACCMs!
Dec 1 21:28:53 box1 pppd[17375]: MPPE required, but kernel has no support.
Dec 1 21:28:53 box1 pppd[17375]: Connection terminated.
Dec 1 21:28:53 box1 pppd[17375]: Connect time 0.0 minutes.
Dec 1 21:28:53 box1 pppd[17375]: Sent 0 bytes, received 58 bytes.
Dec 1 21:28:53 box1 pptpd[17374]: CTRL: Reaping child PPP[17375]
Dec 1 21:28:53 box1 kernel: divert: no divert_blk to free, ppp0 not ethernet
Dec 1 21:28:53 box1 pppd[17375]: Exit.
Dec 1 21:28:53 box1 pptpd[17374]: CTRL: Client 192.168.1.10 control connection finished
Any idea on what that means?