PPP dialup and IP numbers

I think this will solve my problem (thanks Ray Peterson):
That's your problem. The 192.168.1.x subnet is defined for your ethernet, and cannot also be your ppp. I'm assuming you have a subnet mask on the ethernet of 255.255.255.0.
Somebody owns the 1.1.1.1 address, so you definitely shouldn't be using it. You should just use one of the public address ranges - I use the 172.20.x.x subnet.
If you are using 255.255.255.0 as your subnet mask on the ethernet, then you could use 192.168.2.1 and 192.168.2.2 on the ppp for example. I know that the following ranges are labeled as private by RFC 1918 and are available to you.
10.0.0.0/8
172.16.0.0/12
192.168.0.0/16

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