diff --git a/kernel/branches/net/applications/pppoe/pppoe.asm b/kernel/branches/net/applications/pppoe/pppoe.asm
index de1a112112..485f565c0e 100644
--- a/kernel/branches/net/applications/pppoe/pppoe.asm
+++ b/kernel/branches/net/applications/pppoe/pppoe.asm
@@ -32,6 +32,14 @@ include '../dll.inc'
 include '../network.inc'
 include '../struct.inc'
 
+; Ethernet protocol numbers
+ETHER_PPP_DISCOVERY     = 0x6388
+ETHER_PPP_SESSION       = 0x6488
+
+; PPP protocol numbers
+PPP_IPv4                = 0x2100
+PPP_LCP                 = 0x21c0
+
 ; PPP Active Discovery...
 PPPoE_PADI      = 0x09  ; .. Initiation
 PPPoE_PADO      = 0x07  ; .. Offer
@@ -45,13 +53,24 @@ TAG_AC_NAME     = 0x0201
 TAG_HOST_UNIQ   = 0x0301
 TAG_AC_COOKIE   = 0x0401
 
+LCP_config_request      = 1
+LCP_config_ack          = 2
+LCP_config_nak          = 3
+LCP_config_reject       = 4
+LCP_terminate_request   = 5
+LCP_terminate_ack       = 6
+LCP_code_reject         = 7
+LCP_protocol_reject     = 8
+LCP_echo_request        = 9
+LCP_echo_reply          = 10
+LCP_discard_request     = 11
+
 struct  ETH_frame
         DestMac         dp ?
         SrcMac          dp ?
         Type            dw ?
 ends
 
-
 struct  PPPoE_frame     ETH_frame
         VersionAndType  db ?
         Code            db ?
@@ -60,6 +79,17 @@ struct  PPPoE_frame     ETH_frame
         Payload         rb 0
 ends
 
+struct  PPP_frame       PPPoE_frame
+        Protocol        dw ?
+ends
+
+struct  LCP_frame       PPP_frame
+        LCP_Code        db ?
+        LCP_Identifier  db ?
+        LCP_Length      dw ?
+        LCP_Data        rb 0
+ends
+
 ; entry point
 start:
 ; load libraries
@@ -99,6 +129,12 @@ mainloop:
         cmp     eax, sizeof.PPPoE_frame
         jb      mainloop
 
+        cmp     word [buffer + ETH_frame.Type], ETHER_PPP_SESSION
+        je      LCP_input
+
+        cmp     word [buffer + ETH_frame.Type], ETHER_PPP_DISCOVERY
+        jne     mainloop
+
         cmp     [buffer + PPPoE_frame.Code], PPPoE_PADO
         je      pado
 
@@ -166,6 +202,35 @@ close_conn:
         mcall   send, [socketnum], PADT, 14 + 6, 0
         jmp     exit
 
+
+LCP_input:
+
+        cmp     word [buffer + PPP_frame.Protocol], PPP_LCP
+        jne     mainloop
+
+        cmp     [buffer + LCP_frame.LCP_Code], LCP_echo_request
+        je      .echo
+
+  .dump:
+        jmp     mainloop
+
+  .echo:
+        mov     [buffer + LCP_frame.LCP_Code], LCP_echo_reply
+
+        push    dword [buffer + ETH_frame.DestMac]
+        push    dword [buffer + ETH_frame.SrcMac]
+        pop     dword [buffer + ETH_frame.DestMac]
+        pop     dword [buffer + ETH_frame.SrcMac]
+        push    word [buffer + ETH_frame.DestMac + 4]
+        push    word [buffer + ETH_frame.SrcMac + 4]
+        pop     word [buffer + ETH_frame.DestMac + 4]
+        pop     word [buffer + ETH_frame.SrcMac + 4]
+
+        mov     esi, eax
+        mcall   send, [socketnum], buffer, , 0  ; now send it!
+
+        jmp     mainloop
+
 ; data
 title   db      'PPPoE',0
 str1    db      'Sending PADI',13,10,0
@@ -228,6 +293,7 @@ import  console,        \
 i_end:
 
 socketnum       dd ?
+sid             dw ?
 buffer          rb 4096
                 rb 4096    ; stack
 mem:
diff --git a/kernel/branches/net/network/PPPoE.inc b/kernel/branches/net/network/PPPoE.inc
index 6512d529d1..faabf6973e 100644
--- a/kernel/branches/net/network/PPPoE.inc
+++ b/kernel/branches/net/network/PPPoE.inc
@@ -22,34 +22,14 @@ struct  PPPoE_frame
         Payload         rb 0
 ends
 
-struct  LCP_frame
-        Code            db ?
-        Identifier      db ?
-        Length          dw ?
-        Data            rb 0
-ends
-
 uglobal
         PPPoE_SID       dw ?
         PPPoE_MAC       dp ?
 endg
 
-LCP_config_request      = 1
-LCP_config_ack          = 2
-LCP_config_nak          = 3
-LCP_config_reject       = 4
-LCP_terminate_request   = 5
-LCP_terminate_ack       = 6
-LCP_code_reject         = 7
-LCP_protocol_reject     = 8
-LCP_echo_request        = 9
-LCP_echo_reply          = 10
-LCP_discard_request     = 11
-
-
 ;-----------------------------------------------------------------
 ;
-; IPv4_init
+; PPPoE_init
 ;
 ;  This function resets all IP variables
 ;
@@ -168,8 +148,11 @@ PPPoE_discovery_output:
         lea     esi, [ebx + ETH_DEVICE.mac]
         movsd
         movsw
+        cmp     word[edi], ETHER_PPP_SESSION    ; Allow only PPP_discovery, or LCP
+        je      @f
         mov     ax, ETHER_PPP_DISCOVERY
         stosw
+       @@:
 
 ; And send the packet
         call    [ebx + NET_DEVICE.transmit]
@@ -221,7 +204,7 @@ PPPoE_session_input:
         je      IPv4_input
 
         cmp     ax, PPP_LCP
-        je      LCP_input
+        je      PPPoE_discovery_input   ; Send LCP packets to the PPP dialer
 
         DEBUGF  2,"PPPoE_input: Unknown protocol=%x\n", ax
 
@@ -290,56 +273,6 @@ PPPoE_output:
         ret
 
 
-
-
-;-----------------------------------------------------------------
-;
-; LCP_input:
-;
-;  IN:  Pointer to buffer in [esp]
-;       size of buffer in [esp+4]
-;       pointer to device struct in ebx
-;       pointer to LCP header in edx
-;       size of LCP packet in ecx
-;  OUT: /
-;
-;-----------------------------------------------------------------
-align 4
-LCP_input:
-
-        DEBUGF  1,"LCP_input\n"
-
-        cmp     [edx + LCP_frame.Code], LCP_echo_request
-        je      .echo
-
-        jmp     .dump
-
-  .echo:
-        mov     [edx + LCP_frame.Code], LCP_echo_reply
-        mov     esi, [esp]
-
-        push    dword [esi + ETH_header.DstMAC]
-        push    dword [esi + ETH_header.SrcMAC]
-        pop     dword [esi + ETH_header.DstMAC]
-        pop     dword [esi + ETH_header.SrcMAC]
-        push    word [esi + ETH_header.DstMAC + 4]
-        push    word [esi + ETH_header.SrcMAC + 4]
-        pop     word [esi + ETH_header.DstMAC + 4]
-        pop     word [esi + ETH_header.SrcMAC + 4]
-
-        call    [ebx + NET_DEVICE.transmit]
-        ret
-
-  .dump:
-        DEBUGF  2,"LCP_input: dumping\n"
-        call    kernel_free
-        add     esp, 4
-        ret
-
-
-
-
-align 4
 PPPoE_start_connection:
 
         DEBUGF  2,"PPPoE_start_connection: %x\n", cx