Thanks for the bug report.
I'm closing this bug because it has been fixed in Feisty.
rp-pppoe (3.8-1.1) unstable; urgency=high
* Non-maintainer upload.
* Hardcode path to pppd so that pppoe works even when there is no
pppd installed in the compilation chroot. Closes: #380584
** Changed in: rp-pppoe (Ubuntu)
Status: Unconfirmed => Fix Released
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pppoe-server compiled with incorrect path to pppd
https://launchpad.net/bugs/72967
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