PPP daemon dies

[squarcina]

Hello guys, I'm running a Lucid Puppy version 5.2.5 on my notebook and I'm trying to connect to the Internet via Vodafone Internet Key K3765.. Device is recognized, but I can't connect. I used PupDial to set up the connection, connection succeeds but immediately I get this message

--> Carrier detected. Starting PPP immediately.
--> Starting pppd at Mon Jun 13 22:32:53 2011
--> pid of pppd: 14339
--> Disconnecting at Mon Jun 13 22:33:24 2011
--> The PPP daemon has died: A modem hung up the phone (exit code = 16)
--> man pppd explains pppd error codes in more detail.
--> Try again and look into /var/log/messages and the wvdial and pppd man pages for more information.

I even settled the nameservers in resolv.conf as follows
nameserver 208.67.222.222
nameserver 208.67.220.220

How can I fix this?
thanks