Providing a touch more closure to this thread; since blocking certain packets from being sent through the link, the symptom no longer occurs, so I think the peer is indeed broken.
The ip-up script now does this;
# eth1 satellite service is 192.168.x.x
iptables --insert OUTPUT 1 --source 192.168.0.0/255.255.0.0 \
--destination 0.0.0.0/0.0.0.0 --jump DROP \
--out-interface ${PPP_IFACE}
# eth0 internal network is 10.0.x.x
iptables --insert OUTPUT 1 --source 10.0.0.0/255.255.0.0 \
--destination 0.0.0.0/0.0.0.0 --jump DROP \
--out-interface ${PPP_IFACE}
# block any PPTP VPN traffic
iptables --insert OUTPUT 1 --protocol GRE --jump DROP \
--out-interface ${PPP_IFACE}
--
James Cameron
http://ftp.hp.com.au/sigs/jc/
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