This error is usually due to a missing
MYADDR: delete ALL add 0 0 HISADDR
section in your /etc/ppp/ppp.linkup file. This is only necessary if you have a dynamic IP address or do not know the address of your gateway. If you are using interactive mode, you can type the following after entering packet mode (packet mode is indicated by the capitalized PPP in the prompt):
delete ALL add 0 0 HISADDR
Refer to the PPP and Dynamic IP addresses section of the handbook for further details.