We are usign PPPoE and radius, and everything works fine with Rate-Limit. Users queue gets all parameters correctly. But, we also played with the Rate-Limit for some time before it worked as we want to. Be sure to correctly forward all the data Rate-Limit needs, and the most important,
give them in correct order. It MUST work well
EDIT:
If you do not need burst, you can use Ascend-Data-Rate. It is simle to use, and it needs only one parameter. If you set, for example: Ascend-Data-Rate=262144 your user will get 256k up and down.