I messed with the VPN stuff a bit today, since we have a remote office that could really use it... I tried connecting via my PC on the LAN behind the e-smith, both through it and through the PC's own modem. In both, it would connect, then immediately disconnect within a few seconds. I'm running 98SE with DUN 1.4, and ZoneAlarm Pro. I found
http://forums.contribs.org/index.php?topic=10897.msg41129#msg41129 to have some interesting info on ZA...
I tried connecting from another PC here. I didn't logon to our domain (separate NT4 server for that), but used the LAN internet connection to use the VPN, and logged onto the domain through that. This worked great, giving me access to domain-only shared resources.
The 98SE PC may be disconnecting for one of two reasons. It could be ZoneAlarm, as others seem to have problems with it. Or it could be that the domain server still saw my hostname being used on the network, even though I did disconnect the patch cable from the computer. I'll do some more testing when I have time, and with my PC from home...
If it turns out that it is ZoneAlarm, Tiny Personal Firewall is another option. I haven't messed around with it much, but it's supposed to be comparable in both features and ease of use, and it's still free. I know for a fact that many other "personal firewalls" out there are flawed and/or very complicated to use, though they do seem to be getting better. Steve Gibson can sensationalize things a bit, but he does have a lot of good info on this stuff at grc.com.