> Have you turned on chat debugging (with the -v switch, and enable syslog
> to local2)?  This might give some indication as to what chat thinks it's
> trying to do...

Sorry I should have been more explicit.  Yes I use -v and local2, 

Jul  1 23:55:54 zen chat[882]: timeout set to 60 seconds
Jul  1 23:55:54 zen chat[882]: abort on (NO CARRIER) 
Jul  1 23:55:54 zen chat[882]: abort on (BUSY) 
Jul  1 23:55:54 zen chat[882]: abort on (NO DIALTONE) 
Jul  1 23:55:54 zen chat[882]: send (ATZ^M) 
Jul  1 23:55:54 zen chat[882]: expect (OK) 
Jul  1 23:56:54 zen chat[882]: alarm
Jul  1 23:56:54 zen chat[882]: Failed

ie. chat is simply never seeing the response from the modem.
Using tip, kermit etc, one can see that the modem is ok and responds
as chat has been told to expect.

The setup has been in constant use for over 3 years, the only thing
that has changed is that with my i486 dead (its disk trashed anyway),
the modem is now plugged into this machine (p166).  The pppd config is
the same etc, and both machines run 1.3.

I've unpacked usr/sbin from 1.3.2 and will see if that works any
better.  Back soon (I hope).

--sjg