Yes there was a defect regarding what I believe you are experiencing. It is noted in CSCuy13916.
Have you tried deactivating and re-activating the TFTP service on your IM&P servers?
I want to make sure I'm understanding you correctly. You have DHCP setup for gi0/2 on the 2911 that is working correctly, and you are having trouble setting up gi0/1 as a PPP link with PAP authentication on this same 2911 device? Can you provide me w...
I would like to do gather more information about your setup so I can troubleshoot. What type of devices are you using? Can you provide me with the running config for the devices that this tunnel is setup on?