No, I'm not giving up. Eventually I will have to others in my company up and running on our VPN and I would much rather have my learning curve be with another technically competent user like yourself, than with some of our less technical users; also this way I'm not under the gun time-wise (sorry if you are).
With respect to your Dynamic filter that uses Kerberos, I have one in my policy as well that I cannot delete, but it is also NOT active (Checked).
Looking at your NetDiag output, I see the following differences between your IPSec filters and mine:
1. (This may be important) Your Offer #0 and #2 have been changes to include the tag "With PFS" so they match mine; but your Offer #1 and #3 which used to match mine, now start with AH (Authentication Header) instead of ESP which they previous did and mine do.
2. (Probably not important) For each of my Offers, the ReKey is 900 Sec, where yours are 3600.
I don't know how to change the above, I may poke around a little bit and see if I can figure it out; alternatively, I am (for our internal use) looking for a method to send an IPSec policy to another user, if I figure that out first, I'll adjust my policy to match your setting and send it to you to try out.
Finally, you indicated that the logs look OK. I am attaching a segment of the log from our VPN router (IP Addresses and domains changed to protect the innocent) so you can compare it's output to yours.
VPN Log
System Up Time: 7 days 00:17:33
.com 80
2002-11-21 16:04:10 @out 192.168.1.110 4171 mail.mailserve.net 110
2002-11-21 16:04:48 @out 192.168.1.125 3613
80
2002-11-21 16:10:17 @in 99.99.99.99 500 123.45.678.90 500
2002-11-21 16:10:17 IKE[1] Rx << Delete ISAKMP_SA : cookie ca9f950c cc70c928 | 672bdc96 c8fcd25d
2002-11-21 16:10:17 IKE[1] Tx >> Delete ISAKMP_SA : cookie ca9f950c cc70c928 | 672bdc96 c8fcd25d
2002-11-21 16:10:18 IKE[1] is requested by 192.168.1.2
2002-11-21 16:10:18
2002-11-21 16:10:18 IKE[1] Tx >> MM_I1 : 99.99.99.99 SA
2002-11-21 16:10:18 IKE[1] Rx << MM_R1 : 99.99.99.99 SA, VID
2002-11-21 16:10:18 IKE[1] ISAKMP SA CKI=[8be597b4 64503845] CKR=[8ddd9625 f79c11ae]
2002-11-21 16:10:18 IKE[1] ISAKMP SA DES / SHA / PreShared / MODP_768 / 3600 sec (*3600 sec)
2002-11-21 16:10:18 IKE[1] Tx >> MM_I2 : 99.99.99.99 KE, NONCE
2002-11-21 16:10:19 IKE[1] Rx << MM_R2 : 99.99.99.99 KE, NONCE
2002-11-21 16:10:19 IKE[1] Tx >> MM_I3 : 99.99.99.99 ID, HASH
2002-11-21 16:10:19 IKE[1] Rx << MM_R3 : 99.99.99.99 ID, HASH
2002-11-21 16:10:19 IKE[1] Tx >> QM_I1 : 99.99.99.99 HASH, SA, NONCE, KE, ID, ID
2002-11-21 16:10:19 IKE[1] Rx << QM_R1 : 99.99.99.99 HASH, SA, KE, NONCE, ID, ID, NOTIFY
2002-11-21 16:10:19 IKE[1] Tx >> QM_I2 : 99.99.99.99 HASH
2002-11-21 16:10:19 IKE[1] ESP_SA 3DES / SHA / 3600 sec (*3600 sec) / SPI=[d3e8906a:7fed37ce]
2002-11-21 16:10:19 IKE[1] Set up ESP tunnel with 99.99.99.99 Success !
2002-11-21 16:10:19
2002-11-21 16:11:18 @out 192.168.1.118 2402 264.142.88.43 80
2002-11-21 16:13:09 IKE[73] QM : IPsec SA time out
2002-11-21 16:13:09 IKE[73] Tx >> Delete ESP_SA : spi = a1ae2309
2002-11-21 16:13:24 @out 192.168.1.116 2206 mail.mailserve.net 110
2002-11-21 16:24:40 @in 99.99.99.99 500 123.45.678.90 500
2002-11-21 16:24:40 IKE[1] Rx << QM_I1 : 99.99.99.99 HASH, SA, KE, NONCE, ID, ID
2002-11-21 16:24:40 IKE[1] Tx >> QM_R1 : 99.99.99.99 HASH, SA, NONCE, KE, ID, ID
2002-11-21 16:24:40 IKE[1] Rx << QM_I2 : 99.99.99.99 HASH
2002-11-21 16:24:40 IKE[1] ESP_SA 3DES / SHA / 900 sec (*900 sec) / SPI=[a06b7c18:db7427e5]
2002-11-21 16:24:40 IKE[1] Set up ESP tunnel with 99.99.99.99 Success !
2002-11-21 16:24:40
Hope you can make some sense of this and it is helpful!
John