As the description states, ``ppp'' uses the kernel ``tun'' device. It is necessary to make sure that your kernel has support for this device compiled in.
To check this, go to your kernel compile directory (probably /sys/i386/conf) and examine your kernel configuration file. It needs to have the line
pseudo-device tun 1
in it somewhere. The stock GENERIC kernel has this as standard, so if you
have not installed a custom kernel you don't have to change anything.
If your kernel configuration file does not have this line in it then you
should add the line, re-compile and then re-install the kernel. Boot from
this new kernel.