eap-peap inner outer identity

[Per Hermansson]

Hi
I'm having troubles setting up EAP-PEAP with freeradius (2.1.0) + 
hostapd (0.6.9) + wpa_supplicant (0.6.6)
What I've done is mostly to follow 
http://tldp.org/HOWTO/8021X-HOWTO/freeradius.html
Which basically is to update eap.conf to use peap and add my login 
details to the users file:

"testuser"      User-Password == "Secret149"

The problem is that I always get the following output from freeradius -X 
upon connecting:
Ready to process requests.
rad_recv: Access-Request packet from host 127.0.0.1 port 45567, id=1, 
length=168
        User-Name = "0016dbd4b7d5"
        User-Password = "0016dbd4b7d5"
        NAS-IP-Address = 192.168.1.1
        Called-Station-Id = "00-21-91-F3-D2-21:My-radius"
        Calling-Station-Id = "00-16-EA-E5-C8-E6"
        NAS-Port-Type = Wireless-802.11
        Connect-Info = "CONNECT 11Mbps 802.11b"
...
No authenticate method (Auth-Type) configuration found for the request: 
Rejecting the user
Failed to authenticate the user.

I've tried to search for the problem and I think it has to do with inner 
and outer identity since the User-Name is set to my MAC address.
One solution suggested was to use virtual servers and have different 
users files for the outer and inner identity.
But I haven't found an examples explaining how to do this.

Per