Here are my notes how to configure pppoe-server to run as server for ADSL modem.

Prerequisits

This list might be incomplete

apt-get install pppoe

PPP configuration

/etc/ppp/options

# PPPoE server
#nologin
mru 1492
noreplacedefaultroute
proxyarp
ms-dns 192.168.1.1

/etc/ppp/pap-secrets

# PPPoE server
#client hostname <password> 192.168.1.1
* * "" *