diff --git a/src/add-ons/kernel/network/interfaces/ppp/Jamfile b/src/add-ons/kernel/network/interfaces/ppp/Jamfile
index 3b2cdd32ac..569c2ee233 100644
--- a/src/add-ons/kernel/network/interfaces/ppp/Jamfile
+++ b/src/add-ons/kernel/network/interfaces/ppp/Jamfile
@@ -9,10 +9,10 @@ UseHeaders [ FDirName $(OBOS_TOP) src add-ons kernel network ppp shared libkerne
 R5KernelAddon ppp : kernel network interfaces :
 	ppp.cpp
 	PPPManager.cpp
+	
+	: libkernelppp.a
 ;
 
-LinkSharedOSLibs ppp : libkernelppp.a ;
-
 # Installation
 OBOSInstall install-networking
 	: /boot/home/config/add-ons/kernel/network/interfaces
diff --git a/src/add-ons/kernel/network/ppp/ipcp/Jamfile b/src/add-ons/kernel/network/ppp/ipcp/Jamfile
index befef70937..4cae201b14 100644
--- a/src/add-ons/kernel/network/ppp/ipcp/Jamfile
+++ b/src/add-ons/kernel/network/ppp/ipcp/Jamfile
@@ -9,9 +9,12 @@ UseHeaders [ FDirName $(OBOS_TOP) src add-ons kernel network ppp shared libkerne
 
 
 R5KernelAddon ipcp : kernel network ppp :
+	inet_addr.c
+	
 	ipcp.cpp
 	Protocol.cpp
-	inet_addr.c
+	
+	: libkernelppp.a
 ;
 
 SEARCH on [ FGristFiles inet_addr.c ] = [ FDirName $(OBOS_TOP) src kits network libnet ] ;
diff --git a/src/add-ons/kernel/network/ppp/ipcp/Protocol.cpp b/src/add-ons/kernel/network/ppp/ipcp/Protocol.cpp
index 4538624252..9bf80c492c 100644
--- a/src/add-ons/kernel/network/ppp/ipcp/Protocol.cpp
+++ b/src/add-ons/kernel/network/ppp/ipcp/Protocol.cpp
@@ -356,7 +356,7 @@ IPCP::ParseSideRequests(driver_parameter *requests, ppp_side side)
 void
 IPCP::UpdateAddresses()
 {
-	if(!Interface().IsUp() && !Interface().DoesDialOnDemand())
+	if(State() != PPP_OPENED_STATE && !Interface().DoesDialOnDemand())
 		return;
 	
 	in_addr_t netmask;
@@ -388,12 +388,8 @@ IPCP::UpdateAddresses()
 		netmask = fLocalRequests.netmask;
 	else if(State() != PPP_OPENED_STATE)
 		netmask = INADDR_BROADCAST;
-	else if(IN_CLASSA(fLocalConfiguration.address))
-		netmask = IN_CLASSA_NET;
-	else if(IN_CLASSB(fLocalConfiguration.address))
-		netmask = IN_CLASSB_NET;
 	else
-		netmask = IN_CLASSC_NET;
+		netmask = 0x80000000;
 	inreq.ifra_mask.sin_addr.s_addr = netmask;
 	inreq.ifra_mask.sin_len = sizeof(sockaddr_in);
 	
@@ -403,9 +399,13 @@ IPCP::UpdateAddresses()
 	if(in_control(NULL, SIOCSIFDSTADDR, (caddr_t) &ifreqDestination,
 			Interface().Ifnet()) != B_OK)
 		printf("IPCP: UpdateAddress(): SIOCSIFDSTADDR returned error!\n");
-	if(in_control(NULL, SIOCSIFNETMASK, (caddr_t) &inreq.ifra_mask,
-			Interface().Ifnet()) != B_OK)
-		printf("IPCP: UpdateAddress(): SIOCSIFNETMASK returned error!\n");
+	
+	// the netmask is optional for PPP interfaces
+	if(fLocalRequests.netmask != INADDR_ANY) {
+		if(in_control(NULL, SIOCSIFNETMASK, (caddr_t) &inreq.ifra_mask,
+				Interface().Ifnet()) != B_OK)
+			printf("IPCP: UpdateAddress(): SIOCSIFNETMASK returned error!\n");
+	}
 }
 
 
diff --git a/src/add-ons/kernel/network/ppp/modem/Jamfile b/src/add-ons/kernel/network/ppp/modem/Jamfile
index ae3ff54da3..b0552c40ca 100644
--- a/src/add-ons/kernel/network/ppp/modem/Jamfile
+++ b/src/add-ons/kernel/network/ppp/modem/Jamfile
@@ -12,10 +12,10 @@ R5KernelAddon modem : kernel network ppp :
 	modem.cpp
 	ModemDevice.cpp
 	ACFCHandler.cpp
+	
+	: libkernelppp.a
 ;
 
-LinkSharedOSLibs modem : libkernelppp.a ;
-
 # Installation
 OBOSInstall install-networking
 	: /boot/home/config/add-ons/kernel/network/ppp
diff --git a/src/add-ons/kernel/network/ppp/modem/ModemDevice.cpp b/src/add-ons/kernel/network/ppp/modem/ModemDevice.cpp
index 88dae0f032..04cfe17b81 100644
--- a/src/add-ons/kernel/network/ppp/modem/ModemDevice.cpp
+++ b/src/add-ons/kernel/network/ppp/modem/ModemDevice.cpp
@@ -527,5 +527,5 @@ ModemDevice::Receive(struct mbuf *packet, uint16 protocolNumber = 0)
 		return B_ERROR;
 	}
 	
-	Interface().ReceiveFromDevice(packet);
+	return Interface().ReceiveFromDevice(packet);
 }
diff --git a/src/add-ons/kernel/network/ppp/pap/Jamfile b/src/add-ons/kernel/network/ppp/pap/Jamfile
index 4b94f08df6..5cc6efc97d 100644
--- a/src/add-ons/kernel/network/ppp/pap/Jamfile
+++ b/src/add-ons/kernel/network/ppp/pap/Jamfile
@@ -11,10 +11,10 @@ UseHeaders [ FDirName $(OBOS_TOP) src add-ons kernel network ppp shared libkerne
 R5KernelAddon pap : kernel network ppp :
 	pap.cpp
 	Protocol.cpp
+	
+	: libkernelppp.a
 ;
 
-LinkSharedOSLibs pap : libkernelppp.a ;
-
 # Installation
 OBOSInstall install-networking
 	: /boot/home/config/add-ons/kernel/network/ppp
diff --git a/src/add-ons/kernel/network/ppp/pppoe/Jamfile b/src/add-ons/kernel/network/ppp/pppoe/Jamfile
index bdbd2e7cce..0846a60491 100644
--- a/src/add-ons/kernel/network/ppp/pppoe/Jamfile
+++ b/src/add-ons/kernel/network/ppp/pppoe/Jamfile
@@ -12,10 +12,10 @@ R5KernelAddon pppoe : kernel network ppp :
 	pppoe.cpp
 	PPPoEDevice.cpp
 	DiscoveryPacket.cpp
+	
+	: libkernelppp.a
 ;
 
-LinkSharedOSLibs pppoe : libkernelppp.a ;
-
 # Installation
 OBOSInstall install-networking
 	: /boot/home/config/add-ons/kernel/network/ppp
diff --git a/src/add-ons/kernel/network/ppp/shared/libppp/Jamfile b/src/add-ons/kernel/network/ppp/shared/libppp/Jamfile
index 2e230f62bb..2d7995f76d 100644
--- a/src/add-ons/kernel/network/ppp/shared/libppp/Jamfile
+++ b/src/add-ons/kernel/network/ppp/shared/libppp/Jamfile
@@ -13,5 +13,6 @@ StaticLibrary ppp :
 	
 	_libppputils.cpp
 	PPPInterface.cpp
+	PPPInterfaceListener.cpp
 	PPPManager.cpp
 ;
diff --git a/src/add-ons/kernel/network/ppp/shared/libppp/PPPInterfaceListener.cpp b/src/add-ons/kernel/network/ppp/shared/libppp/PPPInterfaceListener.cpp
new file mode 100644
index 0000000000..2eaa5a9c0b
--- /dev/null
+++ b/src/add-ons/kernel/network/ppp/shared/libppp/PPPInterfaceListener.cpp
@@ -0,0 +1,60 @@
+//----------------------------------------------------------------------
+//  This software is part of the OpenBeOS distribution and is covered 
+//  by the OpenBeOS license.
+//
+//  Copyright (c) 2003 Waldemar Kornewald, Waldemar.Kornewald@web.de
+//---------------------------------------------------------------------
+
+#include "PPPInterfaceListener.h"
+
+#include <Handler.h>
+#include <LockerHelper.h>
+
+
+PPPInterfaceListener::PPPInterfaceListener(BHandler *target)
+	: fTarget(target)
+{
+	Construct();
+}
+
+
+PPPInterfaceListener::PPPInterfaceListener(const PPPInterfaceListener& copy)
+	: fTarget(copy.Target())
+{
+	Construct();
+}
+
+
+PPPInterfaceListener::~PPPInterfaceListener()
+{
+	// TODO: send exit code to thread
+//	int32 tmp;
+//	wait_for_thread(fReportThread, &tmp);
+}
+
+
+status_t
+PPPInterfaceListener::InitCheck() const
+{
+	if(fReportThread < 0)
+		return B_ERROR;
+	
+	return Manager()->InitCheck();
+}
+
+
+void
+PPPInterfaceListener::SetTarget(BHandler *target)
+{
+	LockerHelper locker(fLock);
+	
+	target = fTarget;
+}
+
+
+void
+PPPInterfaceListener::Construct()
+{
+	// TODO:
+	// create report thread and register it as a receiver using PPPManager
+}
diff --git a/src/add-ons/kernel/network/ppp/shared/libppp/headers/PPPInterfaceListener.h b/src/add-ons/kernel/network/ppp/shared/libppp/headers/PPPInterfaceListener.h
new file mode 100644
index 0000000000..5a7c1e79af
--- /dev/null
+++ b/src/add-ons/kernel/network/ppp/shared/libppp/headers/PPPInterfaceListener.h
@@ -0,0 +1,52 @@
+//----------------------------------------------------------------------
+//  This software is part of the OpenBeOS distribution and is covered 
+//  by the OpenBeOS license.
+//
+//  Copyright (c) 2003 Waldemar Kornewald, Waldemar.Kornewald@web.de
+//---------------------------------------------------------------------
+
+#ifndef _PPP_INTERFACE_LISTENER__H
+#define _PPP_INTERFACE_LISTENER__H
+
+#include <PPPManager.h>
+#include <Locker.h>
+
+class BHandler;
+
+
+#define PPP_REPORT_MESSAGE	'P3RM'
+	// the what field of report messages
+
+
+class PPPInterfaceListener {
+	public:
+		PPPInterfaceListener(BHandler *target);
+		PPPInterfaceListener(const PPPInterfaceListener& copy);
+		~PPPInterfaceListener();
+		
+		status_t InitCheck() const;
+		
+		BHandler *Target() const
+			{ return fTarget; }
+		void SetTarget(BHandler *target);
+		
+		const PPPManager *Manager() const
+			{ return &fManager; }
+		
+		PPPInterfaceListener& operator= (const PPPInterfaceListener& copy)
+			{ SetTarget(copy.Target()); return *this; }
+				// all interface listeners have the same number of interfaces
+
+	private:
+		void Construct();
+
+	private:
+		BHandler *fTarget;
+		thread_id fReportThread;
+		
+		PPPManager fManager;
+		BLocker fLock;
+};
+
+
+#endif