Similar Problem - I can connect to the VPN (6.5) from a Windows XP Box (connected to a Wireless router for internet), but the PDA (connected to same router) has authentication issues. The settings in the PDA VPN are very limited. Thought of using other VPN clients out there rather than the VPN client that comes with the PDA by default - but would rather use the default as the latter usually attract a fee.
Is MS-CHAP turned on by default in SME?