help on mgetty on redhat7.2 dial-in server

[arvinboy <arvin burgos menusys net>]

hi guys,
           i have some inquiry with mgetty but first i will show you my
configurations!
1.)/etc/ppp/options
                        - asyncmap 0
                        -netmask 255.255.255.0
                        -proxyarp
                        -lock
                        -crtscts
                        -modem
                        -login
2.)/etc/ppp/options.ttyS0
       -192.168.1.100:192.168.1.200
3.)/etc/ppp/options.ttyS1
       -193.168.1.100:193.168.1.200
4.)/etc/ppp/pap-secrets
 client        server     secret
  test             *            test
5.)/etc/mgetty-sendfax/login.config
   -/AutoPPP/ -      -/usr/sbin/pppd

This are my clarification and my current problem:
1.) Is there any problem with my sample configurations?
2.) Although this is already a working configuration. and now my big
problem is why is it that even when i used a wrong login id and password

which is non existent in my pap-secrets profiles, they can  still login.

why this happen, is it a bug from mgetty? i'm using an rpm
mgetty-1.1.26-6

hope you can help me and sorry for this long message...

arvin