Hmm, now that you mention it, I think they do use MS-CHAP. For the record my ISP is Dodo. About a year ago I used to connect via the 1400, and had no troubles at all.
By the way porter, I hear you on ISPs that expect you to infect your machine with their crapware...its especially annoying when you get ISPs like Telstra who insist on you putting a whole heap of crap on your machine for an "always on" ADSL connection, with which all you need is a machine that supports DHCP!
For the record, I live on a farm, so no ADSL for me...as it is I have enough trouble getting dialup!