Thanks Alan, Now it is working as I wanted. It feels good when things works after trying trying and trying :)

> Date: Fri, 6 Jul 2012 11:36:18 -0400
> From: aland@deployingradius.com
> To: freeradius-users@lists.freeradius.org
> Subject: Re: Active Directory Authentication problem with ppp
>
> madal 30 wrote:
> > I am always getting this error, when I am trying to authenticate user
> > against Active Directory
>
> No, you're not.
>
> > [mschap] No Cleartext-Password configured. Cannot create LM-Password.
> > [mschap] No Cleartext-Password configured. Cannot create NT-Password.
> > [mschap] Creating challenge hash with username: harry
> > [mschap] Told to do MS-CHAPv2 for harry with NT-Password
> > [mschap] FAILED: No NT/LM-Password. Cannot perform authentication.
> > [mschap] FAILED: MS-CHAP2-Response is incorrect
>
> You didn't configure the mschap module to use ntlm_auth.
>
> > Pacakages I have installed.
>
> That is useless information.
>
> > My /etc/pptp/option.pptpd is :
>
> As is that.
>
> > And in /etc/radd/modules/mschap i have following
> > mschap {
> > use_mppe = yes
> > require_encryption =yes
> > require_strong = yes
> > #with_ntdomain_hack = yes
> > ntlm_auth = "/usr/bin/ntlm_auth --request-nt-key
> > --username=%{Stripped-User-Name:-%{User-Name:-none}}
> > --challenge=%{mschap:Challenge:-00} --nt-response=%{mschap:NT-Response:-00}"
> > }
>
> Well, the server isn't using that configuration. Go read the debug
> output to figure out why.
>
> Odds are you have TWO instances of the mschap module defined. Go fix
> that.
>
> Alan DeKok.
> -
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