The “Secured password (EAP-MSCHAP v2)” entry is the only authentication method that appears in the Select Authentication Method list in the Group Policy Management Console in Windows Server 2008 or in Windows Vista
When you use the Group Policy Management Console to configure a Group Policy object for wireless access, you experience the following symptom.
When you click Microsoft: Protected EAP (PEAP) in the Select a network authentication method list, and then click Properties, the Select Authentication Method list appears in the Protected EAP Properties dialog box as expected. However, Secured password (EAP-MSCHAP v2) is the only item that is displayed in this list. When you click the drop-down arrow to expand the list, no other authentication methods are displayed. Therefore, you cannot select an alternative authentication method.
You experience this issue when you use the Group Policy Management Console in Windows Server 2008 or in Windows Vista.
Note: For more information about how to view the Select Authentication Method list, see the “More Information” section.
For more information on this issue, including potential causes, workarounds, and resolutions, see: Microsoft KB Article KB947292.

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