PPPOE

Point To Point Protocol Over Ethernet. Enables use of PPP over an ethernet connection. Here i lay out a working solution between client and server.

The many configuration options are under the 'Cisco IOS Broadband Access Aggregation and DSL Configuration Guide' under the Configuration Guide section of the Cisco Doc.
http://www.cisco.com/en/US/products/ps6441/products_installation_and_configuration_guides_list.html

In this example i have R2 and R3 connected via an ethernet connection. R2 is the client and R3 is the server.

R2

username R3 password 0 RICH

interface Ethernet0/1

ip address 2.2.2.2 255.255.255.248

half-duplex

pppoe enable group global

pppoe-client dial-pool-number 1

interface Dialer1

mtu 1492

ip address 10.10.10.2 255.255.255.0

encapsulation ppp

dialer pool 1

dialer idle-timeout 0

dialer persistent

ppp authentication chap

R3

username R2 password 0 RICH

bba-group pppoe global

virtual-template 1

interface Ethernet0/0

ip address 2.2.2.3 255.255.255.248

half-duplex

pppoe enable group global

interface Virtual-Template1

ip address 10.10.10.3 255.255.255.0

ppp authentication chap