Is there a way to stop the modem from dialing in, and use the PPP from pfsense instead?
It looks like in 1.2.3 it only says link#2, I assume this is an alias and who knows what it is. I see in you netstat -n the 192.168.1.1 entry, it doesn't mean it is being used as a gateway, just a connection, as if the modem sent a broadcast message or something..
If your interface is assigned a public IP address, and you're trying to use a private IP address as a gateway, it ends up being non-routeable. That is like saying on your windows XP computer, you assign 10.0.0.7 to the interface using gateway 192.168.1.1, well since they're different subnets, XP will not successfully use that gateway, unless you add a static route… Quick google pulled this up..
http://social.technet.microsoft.com/Forums/en-US/ForefrontedgeIA/thread/6f79860e-d8a9-4ed2-b79f-f4e16c678c66