Radius support in Asus WL-300g

I am experimenting with the RADIUS support in the Asus WL-300g 802.11g
AccessPoint. I'm trying to use it for authentication purposes.

I am using FreeRadius on Linux as the RADIUS backend. My client OS is
Windows XP.

In my attempts to get things working, I noticed something strange. I put the
AP in WPA/EAS mode and entered a RADIUS server. Then I put the client in
PEAP mode and entered some credentials. The AP then connects to the RADIUS
server and tries to authenticate, which fails because FreeRadius doesn't
support PEAP. But the AP keeps trying to authenticate, multiple times per
second. This goes on and on and after some time I lose the connection with
my AP. Only to see that the AP has no protection at all!

Windows shows that I'm trying to connect to a non-protected netwerk. And
when I accept I can connect to my AP and receive an IP-address. NetStumlber
also shows that the AP has lost his protection. A reboot of the AP restores
the protection, but when I repeat the steps it loses it again.

Is this a bug in the AccessPoint?

Eric