Okay, I have found out the following through trial and error:
LCP Negotiation = of - This means the upstream ISP LAC will negotiate MTU with the CPE (Not what we want)
LCP re-negotiation = on - This means the LNS will negotiate with the CPE (Exactly what we want)
So, now I have an MTU of 1500 at the CPE and the LNS.
So, the original question still stands..... I cannot access most websites with this MTU, yet, when I connect to a different provider other than ourselves it works fine at 1500? We must be missing something somewhere?
I have read something about ICMP Unreachables but we are not blocking any ICMP currently.....
Okay, I think I have it.... MSS Clamping.... however, I can only find the configuration for a pp interface, but I am using an si interface..... anyone tell me how to do this for the LNS to CPE negotiation please?