Ryan,
I had the same problem, but when you change the line parms2, everything works:
[root@smenst ipsec]# pwd
/usr/local/lib/ipsec
[root@smenst ipsec]# cat _updown|grep parms2
#       parms2="dev $PLUTO_INTERFACE gw $PLUTO_NEXT_HOP"
        parms2="dev $PLUTO_INTERFACE"
                it="route $1 -net 0.0.0.0 netmask 128.0.0.0 $parms2 &&
                        route $1 -net 128.0.0.0 netmask 128.0.0.0 $parms2"
        *)      it="route $1 $parms $parms2"
[root@smenst ipsec]#
Ger