Roger,
Sorry for the delay in responding...
SME is setup in server and gateway mode, it's external NIC is attached directly to the DSL modem. It's a speedstream and it doesn't route, that's handled by SME. The internal NIC is connected to a SOHO 8 port 10/100 switch. I do have a small home network, including my test boxes, I have about 7 systems on it. SME is the default gateway and handles NAT in my setup. I'm running SME 5.5U2. I have set the SME box up to be a standalone domain, it runs email and web server too. DHCP services are disabled on the SME box.
I have an internal Win2K server providing DHCP, DNS, WINS and Domain Authentication services to the internal (it's a separate domain from the SME box) network. DNS and WINS on the Win2K server deals with local name resolution as I'm running a mix of OS's on the local lan. It also is the general shared file server.
To connect from home via VPN, I hook up to one of the ports on the switch (the work laptop has a built in NIC) and boot the laptop - it's running XP Pro. I login to the laptop locally and it uses the 'cached' profile. I pick this option because I don't want my home network DC security settings screwing anything up on my work PC. After it boots up, I've checked the IP configuration, it acquires a local IP address assigned from my Win2K server, I can see the lease from the server. My DHCP assigns local IP address, DNS, WINS and default gateway addys. The default gateway is the SME box's internal IP address, same for all clients on the lan.
I open the dialer which (I think) handles verifying there's a connection to the internet available. This can be used to open a dialup connection or to use an already established internet connection via ethernet. This dialer app automatically launches the VPN software and requests the secure card numbers and etc. Once I authenticate to the remote (work) network, the laptop's DNS and WINS settings change. I dont remember if it changes the default router address, I dont' think it can since the SME box IS the local router.
Let me know if you have any more specific questions, I don't check this forum everyday feel free to email me directly if you want: dave@shipmanhome.net.