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Q237691: Windows 98 Dial-Up Networking Security Upgrade Release Notes

Article: Q237691
Product(s): Microsoft Windows 95.x Retail Product
Version(s): WINDOWS:95
Operating System(s): 
Keyword(s): kbreadme kbtool dun osr2 win95 win98 kbDialUp
Last Modified: 27-JUL-2001

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The information in this article applies to:

- Microsoft Windows 95 
- Microsoft Windows 95 OEM Service Release, versions 1.0, 2.0, 2.1, 2.5 
- Microsoft Windows 98 
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SUMMARY
=======

This article contains a copy of the information in the Windows 98 Dial-Up
Networking Security Upgrade Release Notes (Dun40.doc) included with the virtual
private network Update for Microsoft Windows 98 and Dialup Networking 1.3 that
was released in July, 1999.

For additional information about this release, please see the following article
in the Microsoft Knowledge Base:

  Q191540 VPN Update for Microsoft Windows 98 and Dialup Networking 1.3
  Available

NOTE: This document includes several updates to the original version that was
included in the Windows 98 Dial-up Networking Security Upgrade that was released
in August, 1998.

For additional information about this release, please see the following article
in the Microsoft Knowledge Base:

  Q189771 Windows 98 Dial-Up Networking Security Upgrade Release Notes (August
  1998)

MORE INFORMATION
================

Microsoft Windows 98 Dial-Up Networking Security Upgrade 
Release Notes
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1.                Introduction:

This security upgrade for Windows 98 Dial-up Networking is designed to enhance
the protection of both dial-up and VPN connections by strengthening several
aspects of password management and data encryption.

1.1        Installation Notes:

Execute the Install file and follow the instructions it displays. At the end of
the installation process you will be required to reboot your PC.

1.2       MSCHAP V2:

A new MSCHAP secure mode (MSCHAP V2) has been implemented, providing mutual
authentication, stronger initial data encryption keys, and different encryption
keys for the transmit and receive paths.

To minimize the risk of password compromise during MSCHAP exchanges, MSCHAP V2
drops support for the MSCHAP password change V1, and will not transmit the LM
password response.

For VPN connections, a Windows NT 4.0 server (updated as described below) will
negotiate MSCHAP V2 before negotiating the original MSCHAP. An updated Windows
98 client will accept this offer and use MSCHAPV2 as the authentication method.
To ensure that no VPN clients authenticate using MSCHAP, the server can be set
to require MSCHAP V2. This will prevent legacy clients from presenting their
credentials in an MSCHAP or PAP or CHAP exchange, and is a likely configuration
for networks that require the most secure authentication method.

1.3       Secure VPN Mode:

If there are special circumstances in which you wish to ensure that your PC uses
only the new MSCHAP V2 for all VPN connection attempts, a new client-side
registry flag, SecureVPN, can be used to force this behavior. When this flag is
set, your PC will only accept MSCHAP V2 authentication for any VPN connections.
In addition, this flag will require data encryption for all VPN connections.
Dial-up connections are not affected.

  NOTE: Most users will not need to use the Secure VPN flag. This flag should
  be used with care because it will affect the behavior of all VPN connections
  from your machine. In general, the required use of MSCHAP V2 and data
  encryption can be enforced more easily on the server.

The registry setting which will force a Windows 98 client to use only the new
MSCHAP V2 secure mode and require data encryption for PPTP connections is
defined below. By default, this registry variable is absent, meaning "do not
force secure mode on PPTP connections". The value of this variable is checked
just before a connection is attempted.

  HKLM\System\CurrentControlSet\Services\RemoteAccess
  Default: 0x00000000

  DWORD: SecureVPN
  Value: 0x00000001 == Force secure mode (MSCHAP V2 plus data encryption) on all
  PPTP connections
  Value: 0x00000000 == Do not force secure mode on PPTP connections

1.4       LM Response Suppression:

This release also provides a new registry variable which prevents the client from
sending the LM response to a legacy MSCHAP challenge, as defined below. By
default, this variable is absent, meaning that the client should send the LM
response (in order to maintain compatibility with legacy servers). This variable
affects both dial-up and VPN connections; its value is checked just before a
connection is attempted.

  NOTE: Most users will not need to use this registry variable. The new secure
  mode MSCHAP V2 will not send the LMHash response, so this registry value is
  most useful when connecting to older access servers which use the original
  MSCHAP. Setting this variable on a Windows 98 client will prevent the client
  from connecting to a Windows 95 or Windows 98 server.

  HKLM\System\CurrentControlSet\Services\RemoteAccess

  DWORD: UseLmPassword
  Default: 0x00000001

  0x00000000 = Do not send LM challenge response (send only NT challenge
  response)
  0x00000001 = Send LM challenge response

1.5        Forcing Strong Encryption:

Windows 98 Dial-up Networking already supports a checkbox to require encryption
for a specific connection. Clients which support 128-bit encryption will accept
any level of encryption (128-bit or 40-bit) offered by the server. This upgrade
provides a new registry flag, ForceStrongEncryption. When set, this flag will
require 128-bit encryption for any connection which has already been set to
require encryption. (In other words, setting the new registry flag essentially
changes the meaning of the existing checkbox from "require encryption" to
"require strong encryption".)

  NOTE: As originally installed, Windows 98 Dial-up Networking supports 40-bit
  encryption. An optional upgrade will be available to users in North America
  which adds the ability to support 128-bit encryption as well.

The registry flag which forces strong encryption is defined below. By default,
the flag is absent. The value of this flag is checked just before a connection
is attempted.

  HKLM\System\CurrentControlSet\Services\RemoteAccess

  DWORD: ForceStrongEncryption
  Default: 0x00000000

  0x00000000 = No effect; does not force strong encryption
  0x00000001 = Requires 128-bit encryption for any connection which already
  requires encryption

1.6        Server Updates:

This upgrade is fully compatible with legacy Dial-up and PPTP systems. However,
in order to benefit from MSCHAP V2, both the client and server must support this
new mode. Server support for MSCHAPV2 will be included in Windows NT 4.0 Service
Pack 4. For installations which require these features before general
availability of Service Pack 4, a hotfix for Service Pack 3 has been created.
This can be found on the Microsoft FTP site at
ftp://ftp.microsoft.com/bussys/winnt/winnt-public/fixes/usa/NT40/hotfixes-postSP3/pptp3-fix.
Servers running the Routing and Remote Access Upgrade should first apply the
above, and then also apply rras30-fix from the same location.

  NOTE: RAS and PPTP servers must be maintained to current Windows NT Service
  Pack levels. A Windows 98 client machine may not connect to a Windows NT
  Server that has not been updated to Service Pack 3 or above.

1.7        Other Changes:

The details section of the connection status display has been modified to
identify the specific form of CHAP that was used in the connection. Standard
CHAP is displayed as "Challenge Authentication Protocol"; legacy MSCHAP is
displayed as "Microsoft Challenge Authentication Protocol"; and MSCHAP V2 is
displayed as "Microsoft Mutual Challenge Authentication Protocol".

1.8        Removing this Update:

This security upgrade does not provide its own uninstall program. If you wish to
remove the upgrade, you can accomplish this by removing and re-installing
Dial-up Networking as a whole. If you installed Windows 98 as an upgrade, this
process may ask for your original Windows 98 CD. If you have defined connections
in the Dial-up Networking folder, these will not be lost. However, all
information regarding ISDN devices (including switch type and spid) will be
lost, so you should record this information before proceeding. (ISDN information
can be created or reviewed by running the ISDN Setup Wizard which can be found
in the Start -> Programs -> Accessories -> Communications menu.) To
uninstall Dial-up Networking, use the Windows Setup tab of the "Add/Remove
Programs" application in the control panel. Select Communications, then click on
the Details button to see individual components. Note the communications
features which had previously been enabled so that you can restore them later.
Deselect Dial-up Networking and click on OK for this dialog and the Windows
Setup dialog. You may receive a warning that removing Dial-up Networking will
also remove other features which depend on it. Make a note of these features for
later use, and click OK. To reinstall the original Windows 98 Dial-up Networking
without this security upgrade, return to the Windows Setup tab of the
"Add/Remove Programs" application in the control panel. Select Communications,
and again click on the Details. Select Dial-up Networking and each of the
communications features which had previously been enabled. Then click OK to this
dialog and the Windows Setup dialog.

  NOTE: As Windows restores Dial-up Networking and the associated components,
  you will receive warnings that the installer has found that that a file which
  it is about to write is older than the one already present on your machine.
  In most situations, you would keep the newer file. However, in this case, the
  correct response is to write the older file to your PC.

Additional query words:

======================================================================
Keywords          : kbreadme kbtool dun osr2 win95 win98 kbDialUp 
Technology        : kbWin95search kbWin98search kbOPKSearch kbZNotKeyword3 kbWin98 kbWin95OPKOSR25 kbWin95OPKOSR210
Version           : WINDOWS:95
Issue type        : kbinfo

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