Running the PPP daemon (pppd) on a root file system that is flash based causes a Segmentation Fault. The reason this happens is the PPP daemon tries to memory map a file in /var and it can't do that when /var is in a flash file system. This is limitation of flash based file systems like JFFS2 or CRAMFS.
The solution is to modify the root file system to store temporary files in a RAM based file system which is usually a good idea anyway. Moving /var out of flash allows the memory mapping to succeed eliminating the problem.