This list is my Obi Wan - please help if you can PPTP VPN Client in Ubuntu Server

I have been at this for 2 days now...any help greatly appreciated.

Trying to connect my Ubuntu 8.04.3 LTS , Linux 2.6.24-24-server on i686 via PPTP VPN Client to a PPTP Server running at work on a Cisco RV042. I have ADMIN rights to the Cisco router, but there are no options available for the PPTP server, you just enable it and add usernames/passwords.

I actually have the PPTP VPN client up in Webmin as well, I have tried every option there as well as changing them in the config files themselves. Below is the latest flavor, but every option gives basically the same result. 

I have googled until I am blue in the face. I get obsessed with this stuff, so if anyone can help it will mean I can go back to eating and sleeping again.
Thanks in advance,
Judy

Here is the out put of  pppd pty 'pptp ipaddressofwork --nolaunchpppd' call work debug dump logfd 2 nodetach
pppd options in effect:
debug           # (from command line)
nodetach                # (from command line)
logfd 2         # (from command line)
dump            # (from command line)
noauth          # (from /etc/ppp/options.pptp)
refuse-chap             # (from /etc/ppp/options.pptp)
refuse-mschap           # (from /etc/ppp/options.pptp)
refuse-eap              # (from /etc/ppp/options.pptp)
name dc2                # (from /etc/ppp/peers/work)
                # (from /etc/ppp/options.pptp)
pty pptp ipaddressofwork --nolaunchpppd           # (from command line)
crtscts         # (from /etc/ppp/options)
                # (from /etc/ppp/options)
asyncmap 0              # (from /etc/ppp/options)
lcp-echo-failure 4              # (from /etc/ppp/options)
lcp-echo-interval 30            # (from /etc/ppp/options)
hide-password           # (from /etc/ppp/options)
proxyarp                # (from /etc/ppp/options)
nobsdcomp               # (from /etc/ppp/options.pptp)
nodeflate               # (from /etc/ppp/options.pptp)
require-mppe            # (from /etc/ppp/peers/work)
nomppe-stateful         # (from /etc/ppp/peers/work)
noipx           # (from /etc/ppp/options)
using channel 61
Using interface ppp0
Connect: ppp0 <--> /dev/pts/1
sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0xd1358b76> <pcomp> <accomp>]
rcvd [LCP ConfReq id=0x1 <asyncmap 0x0> <auth chap MS-v2> <magic 0x60d00ed9> <pcomp> <accomp>]
sent [LCP ConfAck id=0x1 <asyncmap 0x0> <auth chap MS-v2> <magic 0x60d00ed9> <pcomp> <accomp>]
sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0xd1358b76> <pcomp> <accomp>]
rcvd [LCP ConfAck id=0x1 <asyncmap 0x0> <magic 0xd1358b76> <pcomp> <accomp>]
sent [LCP EchoReq id=0x0 magic=0xd1358b76]
rcvd [LCP EchoReq id=0x0 magic=0x60d00ed9]
sent [LCP EchoRep id=0x0 magic=0xd1358b76]
rcvd [CHAP Challenge id=0x4c <584b2a79cdf02c0476158bd70996fa88>, name = "pptpd"]
sent [CHAP Response id=0x4c <5b873daf1f9704378dd9211e716aa6a50000000000000000476de9c83fb6017197b564c683dc093b9ee9708a6e29360900>, name = "dc2"]
rcvd [LCP ConfReq id=0x2 <asyncmap 0x0> <auth chap MS-v2> <magic 0xcc79c142> <pcomp> <accomp>]
sent [LCP ConfReq id=0x2 <asyncmap 0x0> <magic 0xd31b3122> <pcomp> <accomp>]
sent [LCP ConfAck id=0x2 <asyncmap 0x0> <auth chap MS-v2> <magic 0xcc79c142> <pcomp> <accomp>]
rcvd [LCP ConfAck id=0x1 <asyncmap 0x0> <magic 0xd1358b76> <pcomp> <accomp>]
rcvd [LCP ConfAck id=0x2 <asyncmap 0x0> <magic 0xd31b3122> <pcomp> <accomp>]
sent [LCP EchoReq id=0x0 magic=0xd31b3122]
rcvd [LCP EchoReq id=0x0 magic=0xcc79c142]
sent [LCP EchoRep id=0x0 magic=0xd31b3122]
rcvd [CHAP Challenge id=0xb4 <4f18bb84543d48bb542d3cda8e549930>, name = "pptpd"]
sent [CHAP Response id=0xb4 <b4fb67ca01b2195926609ebc35885e550000000000000000c22489d3bbb30d0636677b9527013e5554cd152f3f971dc800>, name = "dc2"]
rcvd [LCP EchoRep id=0x0 magic=0xcc79c142]
rcvd [CHAP Success id=0xb4 "S=45A2939921E17A3A76D49EEB58B57693B252109F M=Access granted"]
CHAP authentication succeeded
sent [CCP ConfReq id=0x1 <mppe +H -M +S +L -D -C>]
rcvd [CCP ConfReq id=0x1 <mppe -H +M +S +L -D -C>]
Refusing MPPE stateful mode offered by peer
MPPE required but peer negotiation failed
sent [LCP TermReq id=0x3 "MPPE required but peer negotiation failed"]
sent [CCP ConfRej id=0x1 <mppe -H +M +S +L -D -C>]
rcvd [CCP ConfNak id=0x1 <mppe -H -M +S -L -D -C>]
Discarded non-LCP packet when LCP not open
rcvd [LCP TermAck id=0x3]
Connection terminated.
Waiting for 1 child processes...
  script pptp ipaddressofwork --nolaunchpppd, pid 27168
Script pptp ipaddressofwork --nolaunchpppd finished (pid 27168), status = 0x0

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