I'll have a crack...
> 1. Is Freeswan and PPTP different or the same?
different. Freeswan defines "permanent" always on vpn connections from server to server. PPTP is a "temporary" client based "dial-up" connection.
> 2. The howto for setting up Freeswan on SME is great, but
> does that mean that at every employee's house I need a SME
> for it to connect to, can I just set it all up in Windows to
> connect to the SME VPN?
Hmm... I think the howto just covers connecting SME servers together. Whilst it is possible to connect various different types of IPSEC "permanent" firewalls together, it can be haphazard and time-consuming. Connecting Freeswan "directly to Windows" is not possible (AFAIK(?)).
> 3. Once a VPN connection is made, does that mean that they
> are on the local network at work, so they have to login to
> the domain controller to access the terminal server?
They are on the local network. And specifically with respect to a PPTP connection, the setting for the "Use Default Gateway on remote network" in the Advanced TCP/IP settings of the "TCP/IP" properties of the "Networking" tab of the PPTP connection (phew) dictates whether or not ALL the users net traffic goes through the PPTP connection or just the traffic destined for your work LAN.
As for logging in to the domain controller - I guess that depends how you have your windows security setup. I know that when PPTP-ing into work from my home machine I can use terminal server on a work box just by logging in with appropriate credentials and specifiying the domain in the appropriate dropdown at the TS login screen.
I'm sure you'll get a lot of responses to this question

G