I do not use PSI as my ISP but I had a similar problem 
with AT&T Worldnet. 

Your ISP is trying to authenticate with either PAP or 
CHAP. Can't tell which one from below, but I think the 
following will work in either case:

Put in both your /etc/pap-secrets and /etc/chap-secrets 
files:

username  *  password

Put into diald.conf:

user  username

where username is your login id for PSI.

Good luck!
> I am having a problem getting diald to work.  I hope someone out there
> can help.  When I use diald, I get errors from pppd (see
> /var/log/messages below).  I use PSI as my ISP, so I hope someone out
> there has diald working with PSI and got this to work.
> 
> if instead I use minicom to manually dial in and start ppp by hand, it
> works fine.
> Below is /var/log/messages, /etc/diald.conf and my connect script
> 
>   ------------------------------------------------------------------------
> 
> /var/log/messages
> Nov  4 00:46:45 localhost connect: Protocol started
> Nov  4 00:46:45 localhost diald[1089]: Connected to site 192.168.0.2
> Nov  4 00:46:45 localhost diald[1089]: Running pppd (pid = 1122).
> Nov  4 00:46:45 localhost modprobe: can't locate module char-major-108
> Nov  4 00:46:46 localhost kernel: PPP: version 2.3.7 (demand dialling)
> Nov  4 00:46:46 localhost kernel: PPP line discipline registered.
> Nov  4 00:46:46 localhost pppd[1122]: The remote system is required to
> authentic
> ate itself but I
> Nov  4 00:46:46 localhost pppd[1122]: couldn't find any suitable secret
> (passwor
> d) for it to use to do so.
> Nov  4 00:46:46 localhost kernel: registered device ppp0
> Nov  4 00:46:46 localhost diald[1089]: start sl0: SIOCSIFMETRIC:
> Operation not s
> upported
> Nov  4 00:46:46 localhost diald[1089]: start sl0: SIOCADDRT: File exists
> 
> Nov  4 00:46:46 localhost diald[1089]: start sl0: SIOCADDRT: File exists
> 
> Nov  4 00:46:46 localhost diald[1089]: start sl0: SIOCSIFMETRIC:
> Operation not s
> upported
> Nov  4 00:46:46 localhost diald[1089]: start sl0: SIOCADDRT: File exists
> 
> Nov  4 00:46:46 localhost diald[1089]: start sl0: SIOCADDRT: File exists
> 
> Nov  4 00:46:47 localhost diald[1089]: Delaying 30 seconds before clear
> to dial.
> 
>   ------------------------------------------------------------------------
> 
> /etc/diald.conf
> mode ppp
> connect /usr/lib/diald/connect
> device /dev/ttyS1
> speed 115200
> modem
> lock
> crtscts
> local 192.168.0.1
> remote 192.168.0.2
> dynamic
> defaultroute
> include /usr/lib/diald/standard.filter
> 
>   ------------------------------------------------------------------------
> 
> Just the modifications I made to /usr/lib/diald/connect...
> 
> PHONE_NUMBER=<phone number>
> USER_CHAT_SEQ="ogin:--ogin:--"
> USER_NAME="<my username>"
> PASSWD_CHAT_SEQ="word:"
> PASSWORD="<my password>"
> # PROMPT is commented out since PPP comes up automatically.
> #PROMPT="annex:"
> START_ACK="Entering PPP mode."
> 
>   ------------------------------------------------------------------------
> 
> Thanks for any help you can provide.
> 
> 
> 
> 
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