[pptp-server] pptpd not encrypting traffic, though it says it is.

[C. Thomas]

It's quite odd!  pptpd is set up and working away
happily, with no observable problems.  The log looks
just as one would like, as you can see below:
Encryption appears to be enabled, and everyone is
happy.

However, when I sniff packets coming into ppp0,
everything is in plaintext!!!  What would make pptpd
"lie" about it encrypting stuff when it is really not?

Ideas?

Feb 23 20:33:57 fire pptpd[22846]: CTRL: Sent packet
to client
Feb 23 20:33:57 fire pppd[22847]: sent [IPCP ConfReq
id=0x1 <addr 192.168.1.221> <compress VJ 0f 01>]
Feb 23 20:33:57 fire pppd[22847]: sent [CCP ConfReq
id=0x1 <deflate 15> <deflate(old#) 15> <mppe 1 0 0 60>
<bsd v1 15>]
Feb 23 20:33:57 fire pppd[22847]: MSCHAP-v2 peer
authentication succeeded for ASA\\cthomas
Feb 23 20:33:57 fire pppd[22847]: rcvd [IPCP ConfReq
id=0x1 <addr 0.0.0.0> <ms-dns1 0.0.0.0> <ms-wins
0.0.0.0> <ms-dns3 0.0.0.0> <ms-wins 0.0.0.0>]
Feb 23 20:33:57 fire pppd[22847]: sent [IPCP ConfRej
id=0x1 <ms-dns1 0.0.0.0> <ms-dns3 0.0.0.0>]
Feb 23 20:33:57 fire pppd[22847]: rcvd [CCP ConfReq
id=0x1 <mppe 1 0 0 30>]
Feb 23 20:33:57 fire pppd[22847]: sent [CCP ConfNak
id=0x1 <mppe 1 0 0 60>]
Feb 23 20:33:57 fire pppd[22847]: rcvd [IPCP ConfRej
id=0x1 <compress VJ 0f 01>]
Feb 23 20:33:57 fire pppd[22847]: sent [IPCP ConfReq
id=0x2 <addr 192.168.1.221>]
Feb 23 20:33:57 fire pppd[22847]: rcvd [CCP ConfRej
id=0x1 <deflate 15> <deflate(old#) 15> <bsd v1 15>]
Feb 23 20:33:57 fire pppd[22847]: sent [CCP ConfReq
id=0x2 <mppe 1 0 0 60>]
Feb 23 20:33:57 fire pppd[22847]: rcvd [IPCP ConfReq
id=0x2 <addr 0.0.0.0> <ms-wins 0.0.0.0> <ms-wins
0.0.0.0>]
Feb 23 20:33:57 fire pppd[22847]: sent [IPCP ConfNak
id=0x2 <addr 192.168.1.231> <ms-wins 192.168.1.40>
<ms-wins 192.168.1.40>]
Feb 23 20:33:57 fire pppd[22847]: rcvd [CCP ConfReq
id=0x2 <mppe 1 0 0 20>]
Feb 23 20:33:57 fire pppd[22847]: sent [CCP ConfAck
id=0x2 <mppe 1 0 0 20>]
Feb 23 20:33:57 fire pppd[22847]: rcvd [IPCP ConfAck
id=0x2 <addr 192.168.1.221>]
Feb 23 20:33:57 fire pppd[22847]: rcvd [CCP ConfNak
id=0x2 <mppe 1 0 0 20>]
Feb 23 20:33:57 fire pppd[22847]: sent [CCP ConfReq
id=0x3 <mppe 1 0 0 20>]
Feb 23 20:33:57 fire pppd[22847]: rcvd [IPCP ConfReq
id=0x3 <addr 192.168.1.231> <ms-wins 192.168.1.40>
<ms-wins 192.168.1.40>]
Feb 23 20:33:57 fire pppd[22847]: sent [IPCP ConfAck
id=0x3 <addr 192.168.1.231> <ms-wins 192.168.1.40>
<ms-wins 192.168.1.40>]
Feb 23 20:33:57 fire pppd[22847]: found interface eth0
for proxy arp
Feb 23 20:33:57 fire pppd[22847]: local  IP address
192.168.1.221
Feb 23 20:33:57 fire pppd[22847]: remote IP address
192.168.1.231
Feb 23 20:33:57 fire pppd[22847]: Script
/etc/ppp/ip-up started (pid 22848)
Feb 23 20:33:57 fire pppd[22847]: rcvd [CCP ConfAck
id=0x3 <mppe 1 0 0 20>]
Feb 23 20:33:57 fire pppd[22847]: MPPE 40 bit,
stateless compression enabled


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