an embedded linux ppp problem

[James Shaker <james@vartek-corp.com>]

I am running busybox in an embedded application.  I have the chat script 
working up to the login portion.  At that point the script hangs waiting 
for the "ogin:".  When I have the modem hooked up to my laptop and 
manually dialed into the callin server I get the right prompts. However 
when the modem is connected to the embedded device, the last message 
sent is CONNECT 115200.

Here are is some of the scripts:

$ cat ppp-on
#!/bin/sh
PHN=xxxxxxxxxxx
TELEPHONE=$PHN
ACCOUNT=xxxxxxxx
PASSWORD=xxxxxxx
LOCAL_IP=0.0.0.0
REMOTE_IP=0.0.0.0
NETMASK%5.255.255.0
PROTOCOL=PPP
export TELEPHONE ACCOUNT PASSWORD PROTOCOL
DIALER_SCRIPT=/etc/ppp/ppp-on-dialer
/bin/setserial /dev/ttyAM1 auto_irq autoconfig
exec pppd $LOCAL_IP:$REMOTE_IP /dev/ttyAM1 115200 modem connect 
$DIALER_SCRIPT &
 
$ cat ppp-on-dialer
#!/bin/sh
/usr/sbin/chat -E -v -s -f /etc/ppp/pppconnect

$ cat pppconnect
TIMEOUT 6
ABORT 'BUSY'
ABORT 'NO ANSWER'
'' AT
'OK' ATH0
TIMEOUT 60
OK ATDTxxxxxxxxxxx
CONNECT ''
ogin: xxxxx
assword: 'xxxxxx

Here what the connect-errors shows:

timeout set to 6 seconds
abort on (BUSY)
abort on (NO ANSWER)
send (AT^M)
expect (OK)
AT^M^M
OK
 -- got it

send (ATH0^M)
timeout set to 60 seconds
expect (OK)
^M
ATH0^M^M
OK
 -- got it

send (ATDT18669686661^M)
expect (CONNECT)
^M
ATDT18669686661^M^M
MESSAGE-WAITING^M
^M
CONNECT
 -- got it

send (^M)
expect (115200)
 115200
 -- got it

send ( ^M)
expect (allin)
^M
alarm
Failed


Any suggestions of what to try are greatly appreciated.

James