All set guys. Problem was in the routing. Apparently windows XP remote desktop require responses for authentication to come from the same IP that the connection is going to. Win 2k Terminal Services does not, so that was still connecting. My NAT was directing input traffic to the VPN server...
So here is a fun one...
VPN is up and running and seemed to be working normally until it was discovered that windows XP users could not connect. I have since tried the connection with win 2k and 98. Both work fine... just not XP. The kicker is that it worked fine when I was using a win 2k...
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