PEAP-EAP-MD5 failure with freeradius-2.1.1

Dear All, Kndly help with the following setup: SETUP; wifi client (Windows-XPservice pack 2) <-----------------> AP <-----------------------> freeradius-2.1.1 on red hat fedora-9 auth type:PEAP-EAP-MD5 wpa-enterprise (external Radius Server) user: client password :test123 I trying to use WPA-Enterprise using PEAP,EAP-MD5 as authentication type and freeradius-2.1.1 as external radius server. It fails to authenticate. Attached are the log files and wireshark captures from the freeradius-2.1.1. Regards Prasad