hey i have been facing the same problem with ubuntu intrepid also.....

my connection used to work properly but i changed the modem and did the
pppoeconf thingy , its a different connection from the same isp (bsnl
-india)

now i get the message "alienware pppd[17610]: Cannot determine ethernet address 
for proxy ARP"
in plog and my internet stops working after sometime................ sometimes 
in like 10mins if its left ideal.......

after the net stops working ppp0 is still connected........... i can
ping the modem but not any www sites........ ping www.google.com returns
"unknown host"

/etc/resolv.conf still has the valid nameservers............ only error i c is 
"alienware pppd[17610]: Cannot determine ethernet address for proxy ARP" could 
this be the problem...... reopening the bug.
also i have not been able to find any useful info else where after like a week 
of googling...

thnx

-- 
[edgy] pppd does not correctly work with pptpconfig
https://bugs.launchpad.net/bugs/61329
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