Subject: RE: ppp server?
To: None <brook@trillium.NMSU.Edu, root@beta.datastorm.com>
From: Charles M. Hannum <mycroft@NetBSD.ORG>
List: netbsd-help
Date: 02/02/1996 00:44:28
   When the line drops, the server pppd does not hang up.

I'm not sure about 1.0, but this *definitely* works correctly in  1.1.
Are you, by chance, setting `softcar' or `local' on that port in
/etc/ttys?