The OS is ubuntu 12.04-lts, when using pptpsetup to setup and initiate a VPN connection, it reports:
    $sudo pptpsetup --create vpn --server xxx.xxx.xxx.xxx --username xxx --password xxx --encrypt --start
    Connect: ppp0  /dev/pts/1
    EAP: unknown authentication type 26; Naking
    EAP: peer reports authentication failure
    Connection terminated.
Here is my /etc/ppp/options.pptp file:
    # Lock the port
    lock
    # Authentication
    # We don't need the tunnel server to authenticate itself
    noauth
    # We won't do PAP, EAP, CHAP, or MSCHAP, but we will accept MSCHAP-V2
    # (you may need to remove these refusals if the server is not using MPPE)
    refuse-pap
    refuse-eap
    refuse-chap
    refuse-mschap
    require-mppe-128
    # Compression
    # Turn off compression protocols we know won't be used
    nobsdcomp
    nodeflate
                I had same problem and tried a lot of combinations of authentication modes to connect to Windows host.
I solved leaving only MSCHAPv2 selected in GUI interface.
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