Actually I reainstalled SME server and still no connection, but the errors are differents. Sorry ...
This is from the server sme1:
Feb 25 14:35:37 sme network: Bringing up interface eth0: succeeded
Feb 25 14:35:37 sme ifup: RTNETLINK answers: Network is unreachable
Feb 25 14:35:37 sme ifup: RTNETLINK answers: File exists
Feb 25 14:35:38 sme kernel: NET: Registered protocol family 15
Feb 25 14:35:38 sme racoon: INFO: @(#)ipsec-tools 0.3.3 (http://ipsec-tools.sourceforge.net)
Feb 25 14:35:38 sme racoon: INFO: @(#)This product linked OpenSSL 0.9.7a Feb 19 2003 (http://www.openssl.org/)
Feb 25 14:35:38 sme racoon: INFO: 12.1.1.1[500] used as isakmp port (fd=8)
Feb 25 14:35:38 sme racoon: INFO: 127.0.0.1[500] used as isakmp port (fd=9)
Feb 25 14:35:38 sme network: Bringing up interface ipsec0: succeeded
Feb 25 14:35:38 sme wan: Starting wan succeeded
...
Feb 25 14:35:44 sme racoon: INFO: 192.168.40.38[500] used as isakmp port (fd=8)
Feb 25 14:35:44 sme racoon: INFO: 12.1.1.1[500] used as isakmp port (fd=9)
Feb 25 14:35:44 sme racoon: INFO: 127.0.0.1[500] used as isakmp port (fd=10)
This is from server sme2:
Feb 25 14:28:50 sme2 network: Bringing up interface eth0: succeeded
Feb 25 14:28:50 sme2 ifup: RTNETLINK answers: Network is unreachable
Feb 25 14:28:50 sme2 ifup: RTNETLINK answers: File exists
Feb 25 14:28:50 sme2 kernel: NET: Registered protocol family 15
Feb 25 14:28:51 sme2 racoon: INFO: @(#)ipsec-tools 0.3.3 (http://ipsec-tools.sourceforge.net)
Feb 25 14:28:51 sme2 racoon: INFO: @(#)This product linked OpenSSL 0.9.7a Feb 19 2003 (http://www.openssl.org/)
Feb 25 14:28:51 sme2 racoon: INFO: 12.1.2.1[500] used as isakmp port (fd=8)
Feb 25 14:28:51 sme2 racoon: INFO: 127.0.0.1[500] used as isakmp port (fd=9)
Feb 25 14:28:51 sme2 network: Bringing up interface ipsec0: succeeded
Feb 25 14:28:51 sme2 wan: Starting wan succeeded
...
Feb 25 14:28:58 sme2 racoon: INFO: 192.168.40.50[500] used as isakmp port (fd=8)
Feb 25 14:28:58 sme2 racoon: INFO: 12.1.2.1[500] used as isakmp port (fd=9)
Feb 25 14:28:58 sme2 racoon: INFO: 127.0.0.1[500] used as isakmp port (fd=10)
Since, the SME servers are also Gateway, should I put their internal IP address or external IP address on the SRCGW parameter of "/etc/sysconfig/network-scripts/ifcfg-ipsec0" file ?
Besides, I am actually testing this permanent VPN connection, meaning, I am using 2 computers running VMWare. Each of them has a SME Server with two ethernet cards: one in HostOnly and the other on Bridge.
Thanks for your help.