Yesterday our admins updated our RRAS server, and it looks like PEAP protocol slightly changed.
Here is the new patch for PPP 2.4.7 that allows you to connect to MS RRAS via PEAP VPN
First of all some changes should be done on RRAS server, you need to configure the EAP Payload Size and set MTU to 1344. EAP doesn't support fragmentation per RFC but Microsoft implemented EAP fragmentation, however PPP daemon doesn't support it, and will discard packets that are large than MRU MTU negotiated during LCP
technet.microsoft.com/en-us/library/cc755205(v=ws.10).aspx
Patch itself:
https://github.com/rustylife/peap
Also you will need gnutls-dev package
patch modifies default setup location, from /usr/local to /usr so make sure you run a proper pppd
here is some part of config for peer:
name login@domain.com
remotename login@domain.com
and chap file
# client server secret IP addresses
login@domain.com * password *
if you specify a login in different manner(without @) you'll get a segmentation fault