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I'm following this guide to setup a VPS on my Ubuntu VPS: http://riobard.com/blog/2010-04-30-l2tp-over-ipsec-ubuntu/

My config files are setup as in that guide, openswan version is 2.6.26 I think..

It doesn't work, I can show you my auth.log (on the VPS):

Feb 18 06:11:07 maverick pluto[6909]: packet from 93.36.127.12:500: received Vendor ID payload [RFC 3947] method set to=109 
Feb 18 06:11:07 maverick pluto[6909]: packet from 93.36.127.12:500: received Vendor ID payload [draft-ietf-ipsec-nat-t-ike] method set to=110 
Feb 18 06:11:07 maverick pluto[6909]: packet from 93.36.127.12:500: ignoring unknown Vendor ID payload [8f8d83826d246b6fc7a8a6a428c11de8]
Feb 18 06:11:07 maverick pluto[6909]: packet from 93.36.127.12:500: ignoring unknown Vendor ID payload [439b59f8ba676c4c7737ae22eab8f582]
Feb 18 06:11:07 maverick pluto[6909]: packet from 93.36.127.12:500: ignoring unknown Vendor ID payload [4d1e0e136deafa34c4f3ea9f02ec7285]
Feb 18 06:11:07 maverick pluto[6909]: packet from 93.36.127.12:500: ignoring unknown Vendor ID payload [80d0bb3def54565ee84645d4c85ce3ee]
Feb 18 06:11:07 maverick pluto[6909]: packet from 93.36.127.12:500: ignoring unknown Vendor ID payload [9909b64eed937c6573de52ace952fa6b]
Feb 18 06:11:07 maverick pluto[6909]: packet from 93.36.127.12:500: received Vendor ID payload [draft-ietf-ipsec-nat-t-ike-03] meth=108, but already using method 110
Feb 18 06:11:07 maverick pluto[6909]: packet from 93.36.127.12:500: received Vendor ID payload [draft-ietf-ipsec-nat-t-ike-02] meth=107, but already using method 110
Feb 18 06:11:07 maverick pluto[6909]: packet from 93.36.127.12:500: received Vendor ID payload [draft-ietf-ipsec-nat-t-ike-02_n] meth=106, but already using method 110
Feb 18 06:11:07 maverick pluto[6909]: packet from 93.36.127.12:500: received Vendor ID payload [Dead Peer Detection]
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[7] 93.36.127.12 #7: responding to Main Mode from unknown peer 93.36.127.12
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[7] 93.36.127.12 #7: transition from state STATE_MAIN_R0 to state STATE_MAIN_R1
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[7] 93.36.127.12 #7: STATE_MAIN_R1: sent MR1, expecting MI2
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[7] 93.36.127.12 #7: NAT-Traversal: Result using draft-ietf-ipsec-nat-t-ike (MacOS X): peer is NATed
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[7] 93.36.127.12 #7: transition from state STATE_MAIN_R1 to state STATE_MAIN_R2
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[7] 93.36.127.12 #7: STATE_MAIN_R2: sent MR2, expecting MI3
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[7] 93.36.127.12 #7: Main mode peer ID is ID_IPV4_ADDR: '10.0.1.8'
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[7] 93.36.127.12 #7: switched from "L2TP-PSK-NAT" to "L2TP-PSK-NAT"
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #7: deleting connection "L2TP-PSK-NAT" instance with peer 93.36.127.12 {isakmp=#0/ipsec=#0}
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #7: transition from state STATE_MAIN_R2 to state STATE_MAIN_R3
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #7: new NAT mapping for #7, was 93.36.127.12:500, now 93.36.127.12:36810
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #7: STATE_MAIN_R3: sent MR3, ISAKMP SA established {auth=OAKLEY_PRESHARED_KEY cipher=oakley_3des_cbc_192 prf=oakley_sha group=modp1024}
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #7: ignoring informational payload, type IPSEC_INITIAL_CONTACT msgid=00000000
Feb 18 06:11:07 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #7: received and ignored informational message
Feb 18 06:11:08 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #7: the peer proposed: 69.147.233.173/32:17/1701 -> 10.0.1.8/32:17/0
Feb 18 06:11:08 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #8: responding to Quick Mode proposal {msgid:183463cf}
Feb 18 06:11:08 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #8:     us: 69.147.233.173<69.147.233.173>[+S=C]:17/1701
Feb 18 06:11:08 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #8:   them: 93.36.127.12[10.0.1.8,+S=C]:17/64111===10.0.1.8/32
Feb 18 06:11:08 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #8: transition from state STATE_QUICK_R0 to state STATE_QUICK_R1
Feb 18 06:11:08 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #8: STATE_QUICK_R1: sent QR1, inbound IPsec SA installed, expecting QI2
Feb 18 06:11:08 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #8: transition from state STATE_QUICK_R1 to state STATE_QUICK_R2
Feb 18 06:11:08 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #8: STATE_QUICK_R2: IPsec SA established transport mode {ESP=>0x0b1cf725 <0x0b719671 xfrm=AES_128-HMAC_SHA1 NATOA=none NATD=93.36.127.12:36810 DPD=none}
Feb 18 06:11:28 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #7: received Delete SA(0x0b1cf725) payload: deleting IPSEC State #8
Feb 18 06:11:28 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #7: netlink recvfrom() of response to our XFRM_MSG_DELPOLICY message for policy eroute_connection delete was too long: 100 > 36
Feb 18 06:11:28 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #7: netlink recvfrom() of response to our XFRM_MSG_DELPOLICY message for policy unk255.10000@69.147.233.173 was too long: 168 > 36
Feb 18 06:11:28 maverick pluto[6909]: | raw_eroute result=0 
Feb 18 06:11:28 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #7: received and ignored informational message
Feb 18 06:11:28 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12 #7: received Delete SA payload: deleting ISAKMP State #7
Feb 18 06:11:28 maverick pluto[6909]: "L2TP-PSK-NAT"[8] 93.36.127.12: deleting connection "L2TP-PSK-NAT" instance with peer 93.36.127.12 {isakmp=#0/ipsec=#0}
Feb 18 06:11:28 maverick pluto[6909]: packet from 93.36.127.12:36810: received and ignored informational message

and my system log on OSX (from where I'm connecting):

Feb 18 13:11:09 luca-ciorias-MacBook-Pro pppd[68656]: pppd 2.4.2 (Apple version 412.3) started by luca, uid 501
Feb 18 13:11:09 luca-ciorias-MacBook-Pro pppd[68656]: L2TP connecting to server '69.147.233.173' (69.147.233.173)...
Feb 18 13:11:09 luca-ciorias-MacBook-Pro pppd[68656]: IPSec connection started
Feb 18 13:11:09 luca-ciorias-MacBook-Pro racoon[68453]: Connecting.
Feb 18 13:11:09 luca-ciorias-MacBook-Pro racoon[68453]: IKE Packet: transmit success. (Initiator, Main-Mode message 1).
Feb 18 13:11:09 luca-ciorias-MacBook-Pro racoon[68453]: IKE Packet: receive success. (Initiator, Main-Mode message 2).
Feb 18 13:11:09 luca-ciorias-MacBook-Pro racoon[68453]: IKE Packet: transmit success. (Initiator, Main-Mode message 3).
Feb 18 13:11:09 luca-ciorias-MacBook-Pro racoon[68453]: IKE Packet: receive success. (Initiator, Main-Mode message 4).
Feb 18 13:11:09 luca-ciorias-MacBook-Pro racoon[68453]: IKE Packet: transmit success. (Initiator, Main-Mode message 5).
Feb 18 13:11:09 luca-ciorias-MacBook-Pro racoon[68453]: IKEv1 Phase1 AUTH: success. (Initiator, Main-Mode Message 6).
Feb 18 13:11:09 luca-ciorias-MacBook-Pro racoon[68453]: IKE Packet: receive success. (Initiator, Main-Mode message 6).
Feb 18 13:11:09 luca-ciorias-MacBook-Pro racoon[68453]: IKEv1 Phase1 Initiator: success. (Initiator, Main-Mode).
Feb 18 13:11:09 luca-ciorias-MacBook-Pro racoon[68453]: IKE Packet: transmit success. (Information message).
Feb 18 13:11:09 luca-ciorias-MacBook-Pro racoon[68453]: IKEv1 Information-Notice: transmit success. (ISAKMP-SA).
Feb 18 13:11:10 luca-ciorias-MacBook-Pro racoon[68453]: IKE Packet: transmit success. (Initiator, Quick-Mode message 1).
Feb 18 13:11:10 luca-ciorias-MacBook-Pro racoon[68453]: IKE Packet: receive success. (Initiator, Quick-Mode message 2).
Feb 18 13:11:10 luca-ciorias-MacBook-Pro racoon[68453]: IKE Packet: transmit success. (Initiator, Quick-Mode message 3).
Feb 18 13:11:10 luca-ciorias-MacBook-Pro racoon[68453]: IKEv1 Phase2 Initiator: success. (Initiator, Quick-Mode).
Feb 18 13:11:10 luca-ciorias-MacBook-Pro racoon[68453]: Connected.
Feb 18 13:11:10 luca-ciorias-MacBook-Pro pppd[68656]: IPSec connection established
Feb 18 13:11:30 luca-ciorias-MacBook-Pro pppd[68656]: L2TP cannot connect to the server
Feb 18 13:11:30 luca-ciorias-MacBook-Pro configd[20]: SCNCController: Disconnecting. (Connection tried to negotiate for, 22 seconds).
Feb 18 13:11:30 luca-ciorias-MacBook-Pro racoon[68453]: IKE Packet: transmit success. (Information message).
Feb 18 13:11:30 luca-ciorias-MacBook-Pro racoon[68453]: IKEv1 Information-Notice: transmit success. (Delete IPSEC-SA).
Feb 18 13:11:30 luca-ciorias-MacBook-Pro racoon[68453]: IKE Packet: transmit success. (Information message).
Feb 18 13:11:30 luca-ciorias-MacBook-Pro racoon[68453]: IKEv1 Information-Notice: transmit success. (Delete ISAKMP-SA).
Feb 18 13:11:31 luca-ciorias-MacBook-Pro racoon[68453]: Disconnecting. (Connection was up for, 20.157953 seconds).
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Hi, try to set the loglevel on the Mac box to high. You could do this in the /etc/ppp/options on linux edit/add this line loglevel 2 this sets the debugging level (0=low, 1=default, 2=high) and altough enable debugging debug. If this does not help read: Diagnosis HOWTO BEWARE of posting your logs afterwards. They may contain the passwords, you may have to edit them. – Darokthar Feb 18 '11 at 12:52

I just found and installed this on 10.04... it works great and didn't require me to patch the kernel or hack a shell script:

https://launchpad.net/l2tp-ipsec-vpn
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