PPTP VPN with KVpnc

From my work I got a nice document how to setup my VPN using windows 7 on my laptop, it basically goes like this:

setup a new connection or network
connect to a workplace
use my internet connection
I entere the IP adres & Destination name
type of VPN: automatic
data encryption: require encryption (disconnect if server declines)
Allow protocols: CHAP, MS-CHAP v2

then after it is created I have to go to its properties and set data encryption not required.

After this I can simply connect, so now I have been trying this at home with KVpnc:

New profile wizard
Select MS PTPP
all the DSN, PPP, MPPE options I leave as they are
enter my username and password
network device: default
leave virtual IP and IPsec unchecked
and at the end I give it a name and enter the IP adres in the VPN gateway option and finish

So far about as easy as under windows 7, however when I try to connect I get:

debug: pppd: /usr/sbin/pppd
debug: Support for GRE found (compiled into kernel or kernel module already loaded).
debug: pppd peer script: /etc/ppp/peers/kvpnc.BL_Uitwijk_VPN 
debug: pppd: /usr/sbin/pppd 
debug: Trying to connect to server "xxx.xxx.xxx.xxx" with user "xxxxxxxxx"... 
debug: Setting DNS_UPDATE "NO".
debug: "pppd" started.
error: Remote modem has hung up. Connection was terminated.
debug: There is a reason to stop connecting, terminating "pppd" process.
debug: Disconnect requested
debug: Disconnect requested, status connecting
debug: Killing process while connecting. 
success: Successful connect try canceled.
debug: Disconnected.

Since with the windows 7 setup I need to set data encryption to not required I have been playing with the MPPE options like unchecking MPPE but still not effect.

I am not a network guru so pretty unsure what I am doing wrong or should change ?

this is on opensuse 11.2
pptp 1.7.2-25.2 (via 11.2-oss)
kvpnc 0.9.6-3.1 (via KDE backports)

thanks for any tips !