I have the same problem, except I am using certificates for authentication. I have tried to restart both mentioned services. Everything worked fine before. I am able to estabilish this L2TP/IPsec connection using Windows XP on the other computer. The MS IPsec Diagnostic Tool says: WFPUtil Diagnosis: ... Information: The log events indicate failed negotiation Analysis Report: IKE/Authip Main Mode Failure Error: 0x00003601, No policy configured. Host machine is indicating error. The authentication method used is Unknown Failed: IKE negotiation failed. SA could not be established --1. Check if both machines have matching filter operations, Encryption options --2. Check if both machines have matching Unknown settings Please Help! Marek Godlewski