On Mon, 18 Oct 2004 14:12:42 +1000, Barry Mather
<barry dot mather at dorecentres dot com dot au> wrote:
> Sorry to ask, couldn't see if it was replied to before, but have you
> tried setting the MTU to 1404 ..
> 
> I had EXACTLY this problem and setting MTU on BOTH sides of the tunnel
> cured it for me.
> 

He isn't have any problems with 1.1, only the new 1.2 beta, so it
sounds like an issue with the new IPsec code or racoon changes rather
than a MTU issue.

-Chris