Okay, I'm over my SSH troubles with ssh-ip-tunnel. But now I'm into PPP 
troubles. Here was the SSH problem: I had have this in /etc/sshd.conf 
file...

PasswordAuthentication no
PermitEmptyPasswords yes

...because of the last item, <clip>vpn peer-name auth</clip> would pass 
with a report of "Auth OK" and then SSH would stomp on the empty 
password of the key id_rsa. 

...but now I get this from pppd. What does it mean...?

Using interface ppp0
Connect: ppp0 <--> /dev/ttyp0
sent [LCP ConfReq id=0x1 <asyncmap 0x0> <magic 0x595aa805> <pcomp> 
<accomp>]
Modem hangup

Thanks,

Gan