We need to use right directory for logging connect-errors. For example: sed -i 's:/etc/ppp/connect-errors:/var/log/connect-errors:' pppd/pathnames.h This problem is fixed in debian: http://patch-tracking.debian.net/patch/series/view/ppp/2.4.4rel-10.1/008_pathnames.h.diff
Fixed in -r23, by changing _PATH_CONNERRS to "/var/log/ppp-connect-errors".
Err, the revision is -r24, of course.