free radius setup

I understand a bit more why people were bring up plain text passwords now. My radius server is being presented with peap ms-chapV2 credentials and I want it to receive authentication from my openldap server. It seems that the credentials in this format cannot be digested by openldap and acknowledged. The passwords in my openldap are encrypted as SHA Do I have this right? Is there an alternative. Maybe that FreeRadius 3.0.0 rc1 mentioned in one of the emails the other day? Thanks for your attention