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A normal user:

On bombadil:
adduser (1000 range UID, /bin/bash shell)

On giles:
adduser (1000 range UID, /usr/local/bin/menu shell)

remake giles:/home/ftp/users/00index

A dial-up user with a fixed IP:

on giles:
useradd -m USERNAME
usermod -s /usr/local/bin/menu USERNAME

create their ~/ppp script
eg cp ~pik/ppp ~USERNAME/

vi ~USERNAME/ppp (fix ip addresses)

chown root:root ~USERNAME/ppp (dont want the user to edit this ??)
chmod a-w ~USERNAME/ppp
chmod a+rx ~USERNAME/ppp

add their login to the "9:your static IP" section in /usr/local/etc/newmenu.cfg

add them to /etc/rc.d/rc.proxyarp (and optionally /etc/rc.d/rc.inet1)

Surely this takes more explanation ...the proxyarp option of pppd only works for one ip address. So if the user is getting a subnet, they are getting a few ip addresses, and they have to be proxyarp'ed in this script ...

Without proxyarp, the ip addresses at the remote site will not be able to get across the ethernet at reservoir rd. They would be able to talk to anyone else dialled into giles, because that is not routed across the ethernet.

whowhere puts the username into the ip address file, so that /etc/ppp/ip-up can then read the username out of the file   (it can find the file by ipaddress )  and then run the appropriate firewalling script. if it exists. the firewalling script may then be some firewall to block that ip address from accessing the rest of the internet, making it a "local only" account.