Issues authenticating vs 2003 AD

[Tim P]

I am handing off a qurest from pppd to radius and am failing with a
valid user in the domain.

Here is the output of radiusd -X -A

Ready to process requests.
rad_recv: Access-Request packet from host 127.0.0.1:32769, id=39, length=72
        Service-Type = Framed-User
        Framed-Protocol = PPP
        User-Name = "ppptest"
        CHAP-Password = 0xa3de2596eae8f89f46e35d612d8858ac55
        NAS-IP-Address = 127.0.0.1
        NAS-Port = 0
  Processing the authorize section of radiusd.conf
modcall: entering group authorize for request 0
  modcall[authorize]: module "preprocess" returns ok for request 0
  rlm_chap: Setting 'Auth-Type := CHAP'
  modcall[authorize]: module "chap" returns ok for request 0
  modcall[authorize]: module "mschap" returns noop for request 0
    rlm_realm: No '@' in User-Name = "ppptest", looking up realm NULL
    rlm_realm: No such realm "NULL"
  modcall[authorize]: module "suffix" returns noop for request 0
  rlm_eap: No EAP-Message, not doing EAP
  modcall[authorize]: module "eap" returns noop for request 0
    users: Matched entry DEFAULT at line 155
    users: Matched entry DEFAULT at line 173
    users: Matched entry DEFAULT at line 185
  modcall[authorize]: module "files" returns ok for request 0
rlm_ldap: - authorize
rlm_ldap: performing user authorization for ppptest
radius_xlat:  '(sAMAccountName=ppptest)'
radius_xlat:  'dc=company,dc=org'
rlm_ldap: ldap_get_conn: Checking Id: 0
rlm_ldap: ldap_get_conn: Got Id: 0
rlm_ldap: attempting LDAP reconnection
rlm_ldap: (re)connect to domcon.company.org:389, authentication 0
rlm_ldap: bind as cn=administrator,cn=Users,dc=company,dc=org/password
to domcon.company.org:389
rlm_ldap: waiting for bind result ...
rlm_ldap: Bind was successful
rlm_ldap: performing search in dc=company,dc=org, with filter
(sAMAccountName=ppptest)
rlm_ldap: looking for check items in directory...
rlm_ldap: looking for reply items in directory...
rlm_ldap: user ppptest authorized to use remote access
rlm_ldap: ldap_release_conn: Release Id: 0
  modcall[authorize]: module "ldap" returns ok for request 0
modcall: group authorize returns ok for request 0
  rad_check_password:  Found Auth-Type CHAP
auth: type "CHAP"
  Processing the authenticate section of radiusd.conf
modcall: entering group Auth-Type for request 0
  rlm_chap: login attempt by "ppptest" with CHAP password
  rlm_chap: Could not find clear text password for user ppptest
  modcall[authenticate]: module "chap" returns invalid for request 0
modcall: group Auth-Type returns invalid for request 0
auth: Failed to validate the user.
Delaying request 0 for 1 seconds
Finished request 0
Going to the next request
--- Walking the entire request list ---
Waking up in 1 seconds...
--- Walking the entire request list ---
Sending Access-Reject of id 39 to 127.0.0.1:32769
Waking up in 2 seconds...
--- Walking the entire request list ---
Cleaning up request 0 ID 39 with timestamp 4303762d
Nothing to do.  Sleeping until we see a request.

Any ideas?  Both mschap and chap are enabled in the radiusd.conf