I\'d be tempted to see what kind of authentication your Z is trying to use, and what your ISP wants (PAP or CHAP), also, compare the scripts on the Z and on your Linux box - I had the very same problem with my uni dialup.
Eventually I tracked it down to the Z sending a line feed or the such at the end of the chat script meaning that the ppp comms never started at the other end (instead a login prompt was sent).
To fix this I did the following:
In the file in /etc/ppp/peers/ there is a line which goes:
connect \'/usr/sbin/chat .... CONNECT\'
I changed this to:
connect \'/usr/sbin/chat .... CONNECT \"~\" \'
Note that the space after the \"~\" is needed!!
By way of explanation, the ~ symbol is always the first thing to be sent in a ppp connection. So this change makes the Z wait for the ppp connection to start, then sends nothing back (the space).
Hope this helps,
Si