Penguin
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MPPE stands for Microsoft Point-to-Point Encryption. It is a protocol designed for transfering encrypted datagrams over point-to-point links using encryption keys varying in length from 40 bits to 128 bits. See RFC:3078 and RFC:3079 for details.

If you want encrypt data when talking to Windows clients over a PPTP link, you will need to compile MPPE support into your Kernel and pppd(8). (See http://public.planetmirror.com/pub/mppe/ or http://pserver.samba.org/cgi-bin/cvsweb/ppp/linux/mppe/ - it's built into PPP 2.4.2)

Should you want to Patch your kernel with MPPE Support, You might find this short HOWTO usefull. MPPEKernelHowto

See also MPPC.