Hi,
After doing more testing rather than doing PEAP authentication I attempted to do TLS Authentication. When I did TLS authentication my TLS User authenticated just fine and I was able to receive an access-accept. When doing PEAP Authentication my PEAP user will fail with an access-reject leaving me to believe it has something to do with the MSCHAP module. I anm still investigating.
what version of SAMBA? 3.0.x wil be fine, as will 3.5.x and 3.6.x latest versions, you may have all kinds of issues with 3.1.x through to 3.4.x. also, when run in full debug mode (radiusd -X) the server will print ot all that it is doing and all the modules activity - part of this is the ACTUAL command that the mschap module is trying to run.....so ensure that the command it is trying to run works via the command line. read all the stuff around it carefully! alan