2. Or as Alexander suggested using the ifconfig which I did.For anyone having this problem here is my workaround ip-up script - http://danielsokolowski.blogspot.com/2013/04/mppecompress0-osize-too-small-have-1404.html
Issue still present as of pppd version 2.4.5 and when Windows 7 machine
VPN is used, there appears to be two solutions:
1. This old patch -
http://us.generation-nt.com/bug-273333-ppp-mppe-pmtud-breakage-workaround-patch-help-165417731.html which
I lack experience on how to implement.