1. Enable OSPF on the routers .All the interfaces should belong to area 0.
Designated Router should not be elected.
Multicast packets are not allowed on the frame relay cloud.
LSA packets should be sent within the frame relay cloud.
2. Enable MD5 Authentication between R1 and R2, and between R1 and R3. Use the key number 2 and password MD5Pwd.

NB: Click here to download the .net file and the initial configuration files.
R1:
interface Serial1/0
ip ospf network point-to-multipoint non-broadcast
interface FastEthernet0/0
ip ospf database-filter all out
router ospf 1
router-id 1.1.1.1
network 0.0.0.0 255.255.255.255 area 0
neighbor 22.22.123.2
neighbor 22.22.123.3
R2:
interface Serial1/0
ip ospf network point-to-multipoint non-broadcast
interface FastEthernet0/0
ip ospf database-filter all out
router ospf 1
router-id 2.2.2.2
network 0.0.0.0 255.255.255.255 area 0
R3:
interface Serial1/0
ip ospf network point-to-multipoint non-broadcast
interface FastEthernet0/0
ip ospf database-filter all out
router ospf 1
router-id 3.3.3.3
network 0.0.0.0 255.255.255.255 area 0
R1#show ip ospf neighbor
Neighbor ID Pri State Dead Time Address Interface
3.3.3.3 0 FULL/ – 00:01:51 22.22.123.3 Serial1/0
2.2.2.2 0 FULL/ – 00:01:51 22.22.123.2 Serial1/0
R1#show ip route ospf
22.0.0.0/8 is variably subnetted, 6 subnets, 2 masks
O 22.22.2.0/24 [110/65] via 22.22.123.2, 00:00:08, Serial1/0
O 22.22.3.0/24 [110/65] via 22.22.123.3, 00:00:08, Serial1/0
O 22.22.123.3/32 [110/64] via 22.22.123.3, 00:00:08, Serial1/0
O 22.22.123.2/32 [110/64] via 22.22.123.2, 00:00:08, Serial1/0
R2#show ip ospf neighbor
Neighbor ID Pri State Dead Time Address Interface
1.1.1.1 0 FULL/ – 00:01:57 22.22.123.1 Serial1/0
R2#show ip route ospf
22.0.0.0/8 is variably subnetted, 6 subnets, 2 masks
O 22.22.1.0/24 [110/65] via 22.22.123.1, 00:00:32, Serial1/0
O 22.22.3.0/24 [110/129] via 22.22.123.1, 00:00:32, Serial1/0
O 22.22.123.3/32 [110/128] via 22.22.123.1, 00:00:32, Serial1/0
O 22.22.123.1/32 [110/64] via 22.22.123.1, 00:00:32, Serial1/0
R3#show ip ospf neighbor
Neighbor ID Pri State Dead Time Address Interface
1.1.1.1 0 FULL/ – 00:01:53 22.22.123.1 Serial1/0
R3#show ip route ospf
22.0.0.0/8 is variably subnetted, 6 subnets, 2 masks
O 22.22.1.0/24 [110/65] via 22.22.123.1, 00:00:36, Serial1/0
O 22.22.2.0/24 [110/129] via 22.22.123.1, 00:00:36, Serial1/0
O 22.22.123.2/32 [110/128] via 22.22.123.1, 00:00:36, Serial1/0
O 22.22.123.1/32 [110/64] via 22.22.123.1, 00:00:36, Serial1/0
R1#show ip ospf interface fastEthernet 0/0
…… omitted output
Database-filter all out
…… omitted output
R2#show ip ospf interface fastEthernet 0/0
…… omitted output
Database-filter all out
…… omitted output
R3#show ip ospf interface fastEthernet 0/0
…… omitted output
Database-filter all out
…… omitted output
R1, R2 & R3:
interface Serial1/0
ip ospf authentication message-digest
ip ospf message-digest-key 2 md5 MD5Pwd