I've just noticed you appended a log file in one of your later posts. The log file is a bit odd, but it appears to be looping through training ok and the furthest its getting is PPP0 LCP confReq which is with the BTw RAS. Its at this point things are failing and it appears to be having difficultly setting up PPP.
You should after that get a CHAP challenge so the BTw RADIUS can set up the L2TP tunnel to the ISP.
Definitely make sure that you are not putting in a static IP info as this can and often does confuse the BTw RADIUS... as its the ISP RADIUS which verifies the PPP login and at this point dishes out the IP. I think you said in one of your posts that idNet said they could see no trace of you attempting to connect to their RADIUS.
In theory if the BTw RAS can't connect you to your ISP, it should at this point allocate one of its own [internal] dynamic IPs which will just give you access as far as the BTw backhaul for performing certain diagnostics.
Do you get anything at all on this page from the web GUI
http://wiki.kitz.co.uk/index.php/TD-W9980_Status