I can set up Internet Connection Sharing on my Windows-7 laptop without problems. (I connect to the DSL modem via wireless)
The client laptop (Windows XP) is directly connected via LAN cable to the Windows-7 laptop and the client correctly gets an IP, Standardgateway and nameserver from the Windows-7 ICS host.
However, when I start my VPN client, I get the error message:
Unable to resolve the IP address of the remote server. Verify the host name in the Destination field is correct.
I can ping the Windows-7 host from the client PC that should run the VPN application.