IPsec? How can you tell it's happening?

[eLinux]

Okay...well, I went and tinkered with Windows 2003 for endless hours today trying to get IPsec connection to work. I finally found a really great article which gave me a rough idea on how to set it up...

I went to the Windows 2k3 IP Security Policy editor and worked through that...

Now here's the problem I'm having.

I'm trying to connect to the server using my Windows XP laptop. It's set up with the *SAME* pre-shared key as the 2k3 server. I check the usual settings in the properties, and tell it to connect...

Problem is when I tell the client *only* to connect using L2TP/IPsec, it fails to connect citing:

"Error 741: The local computer does not support the required data encryption type."

This is quite strange. All the settings in the RRAS setup have pretty much default encryption settings... But the client refuses to connect.

What's even more interesting is the second I put the connection type to "Automatic" it connections almost instantly. The icon on the tray states that I'm using MS CHAP v2, and I'm connected using "WAN Miniport (PPTP)."

This is too weird...and I'm in an IPsec tunnel if it connects using the PPTP method? What's going on? I am assuming I'm not since it fails when I tell it to use L2TP/IPsec...

Please help! What could I be doing wrong?