Help please: "auth: No authenticate method (Auth-Type) configuration found for the request: Rejecting the user"

[Jacob Jarick]

radiusd.conf: http://pastebin.ca/465399
radius -X output: http://pastebin.ca/465404

After following phils guide on the weekend I successfully got both
radtest and radping to return auth-accept packets. The default windows
client wouldnt auth but they dont do PAP as I undertstand. I am
currently using http://www.securew2.org to enable PAP though I am
getting this error.

ERROR:
auth: No authenticate method (Auth-Type) configuration found for the
request: Rejecting the user

My windows client details:
Network Authentication: Open
Data Encryption: WEP
the key is provided for me automatically: (ticked)
EAP type: SecureW2
Authenticate as a computer: (unticked)
Authenticate as a guest: (unticked)

Scurew2 config details:
use alternate outer identity: (unticked)
verify server cert: (unticked)
Select Authentication Method: PAP
Prompt user for credentials: (ticked)

I am using the SecureW2 client / extension because I have been told
numerous times that LDAP only supports PAP and its been suggested that
I get PAP working before anything else (let me know if Im on the right
track with SecureW2).

So Im guessing here, but the reason it fails is because I do not have
eap & pap modules configured ?

Thanks for the help again guys.