Could you please try uninstalling the modemmanager package and rebooting, then
try again.
The modemmanager package in karmic ties up the serial ports.
** Changed in: gnome-ppp (Ubuntu)
Status: Confirmed => Incomplete
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Ubuntu 9.04 gnome-ppp/dgc1.11....deb works, Ubuntu 9.10 does not
https://bugs.launchpad.net/bugs/479242
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