Product and Software: This article applies to all Aruba controllers.
Captive Portal uses PAP and .1X runs on MS-CHAP v2. At one time, Microsoft Windows 2003 can support only one of the authentication types when coupled with MD5 Encryption. So Windows 2003 will either run with PAP or MS-CHAP v2.
The solution to the problem is to create two RADIUS servers and then map them in such a way that Captive Portal uses one RADIUS server and the .1X uses the other RADIUS server stated in the Authentication > Server Group.
Although physically the same RADIUS server is being used, this mapping bypasses the Microsoft Windows 2003 restriction that only one authentication is supported when it is coupled with MD5 Encryption.