Machine auth without cert - EAP-PEAP/MSCHAPV2

I've been experimenting with machine auth without using a cert, but I seem to be stuck on the fact that FreeRadius will not authenticate a local user. I see the request come across through debugging with a username of "host/mymachine.mydomain.com", and no password, and in my users file I have "host/mymachine.mydomain.com" Cleartext-Password="", Auth-Type := Local, MS-CHAP-Use-NTLM-Auth := 0 Filter-ID = "WIRELESS-USER", Fall-Through = 0 but for some reason it never authenticates... I've tried every both without the MS-CHAP option, that doesn't seem to change it. Also tried User-Password instead of cleartext password, no change. Any suggestions? Ryan