I am trying to the same thing except with 2 routers, both 827's. I have got static IP's on both ends of the ADSL connection. I havn't been able to try this yet, but will be doing so in a few weeks, but below are my findings so far. Anyone agree / disagree then please let me know.
1st to configure the encryption.
Router1(config)#crypto isakmp policy 1
Router1(config-isakmp)#encryption 3des
Router1(config-isakmp)#hash sha
Router1(config-isakmp)#authentication pre-share
Router1(config-isakmp)#group 1
Router1(config-isakmp)#lifetime 14400
2nd Configure keying method
Router1(config)#crypto isakmp identity address
Router1(config)#crypto isakmp key secretkey address 200.1.1.1
So the pre-shared key is 'secretkey' and the ip of the address of the other router is 200.1.1.1
You then use access-lists to set up an encryption policy between the routers.
Next you need to define a transform list
Router1(config)#crypto ipsec transform-set tset1 esp-des ah-sha-hmac esp-md5-hmac
Router1(cfg-crypto-trans)#mode tunnel
Next we need to create a crypto map
Router1(config)#crypto map cmap1 local-address atm 0
Router1(config)#crypto map cmap1 ipsec-isakmp
Router1(config-crypto-map)#match address 111 --this relates to the access list.
Router1(config-crypto-map)#set peer 200.1.1.1
Router1(config-crypto-map)#set transform-set tset1
Just to add the crypto-map to the interface
Router1(config)#int atm 0
Router1(config-if)#crypto map cmap1
Just make sure that the proper routes are added to get the data down the tunnel.
Hope this helps, any errors, sugestions etc then let me know as i have to implement this in a week or so.