Framed-Protocol PPP question

[Jonas Fornander]

We have successfully installed and tested FreeRadius.
However authentication fails when we try with a live customer. 
 
Here is the lines in the debug file where it fails:
<snip>
# Executing section authorize from file
/etc/freeradius/sites-enabled/default
+- entering group authorize {...}
++[preprocess] returns ok
[chap] Setting 'Auth-Type := CHAP'
++[chap] returns ok
:
++[pap] returns noop
Found Auth-Type = CHAP
# Executing group from file /etc/freeradius/sites-enabled/default
+- entering group CHAP {...}
[chap] login attempt by "3108396020 at netwood.net" with CHAP password
[chap] Cleartext-Password is required for authentication
++[chap] returns invalid
Failed to authenticate the user.
Login incorrect (rlm_chap: Clear text password not available):
[3108396020 at netwood.net/<CHAP-Password>] (from client LosAngeles port
67371072)
Using Post-Auth-Type Reject
# Executing group from file /etc/freeradius/sites-enabled/default
+- entering group REJECT {...}
</snip>
 
This is the entry we have for the customer in the users file:
<snip>
3108396020 at netwood.net Cleartext-Password := "testing123"
</snip>
 
Any advice is greatly appreciated.
 
Cheers,
Jonas Fornander
System Administrator
 <http://www.netwood.net/> Netwood Communications, LLC
Providing All Your Internet Needs
Tel: 310-442-1530 Fax: 310-496-0712
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