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Hi,

I'm not a developer of PoPToP, but I have got some
experience with the package over the years.
To me it seems like the server i configured to require MPPE
but most likely only stateless.. The client, in this case
being a Mobile 2003, is offering a MPPE stateful mode..
Solution on this may be to enable stateful MPPE on the
server or offer stateless MPPE by the client, either way
should solve the problem...

Good luck! hope it helps you a bit.