Apple Remote Access in Mac OS 9 was able to pull the DNS information (as well as your IP, the gateway IP, and a few other things) from the PPP server automatically when it connected. This is a newer extension to the PPP protocol. However since Windows and Mac OS 9 had it I expected it in Mac OS X.
Looks like Apple hasn't had time to add it yet. You have to specify the DNS IP addresses manually. Hopefully this will be one more thing that Apple fixes before the release date.
I noticed there is something on Version Tracker that should let you connect classic apps through your PPP connection. No idea if it works since I'm on DSL and ethernet connections work just fine in the classic environment.
I have tried every method I can to connect with OS X but still no go... I have checked my DNSs many many many many many...<goes on for a while> times and still nothing, everything is correct and still nothing.
I have tried through classic to use remote access (LOL ) but it did not work.
Oh well..the final will take care of it lol