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Setup L2TP VPN in Windows Vista/7

Step 1 - Open the Start Menu

First, click on the Start Menu and type “VPN” into the search box.

Click on the “Set up a virtual private network (VPN) connection.”

Step 2 - Enter the server information

Now, enter the server information as below.

In the text box labelled “Internet address” type our VPN server host name
In the text box labelled “Destination name” type “My VPN” or whatever you want. This is the name of the connection, and will show up in the “Connect to a network” screen when we’re done.
Lastly, make sure that the checkbox labelled “Don’t connect now; just set it up so I can connect later” is checked.
Then click the “Next” button.

Step 3 - Enter your VPN username and password

In this screen, enter your VPN username and password.

In the text box labelled “User name:”, enter VPN username.
In the text box labelled “Password:”, enter your VPN password.
Optionally, check the “Remember this password” checkbox and you won’t have to enter your password when you connect to to us.
Then, click the “Create” button.

Step 4 - Go to the connection

Click on the Start Menu, type the word “Network” into the search box, and click on “Network and Sharing Center”.

When the Network and Sharing Center opens, click on “Connect to a network”.

When you click on “Connect to a network”, a list of VPNs pops up. Right click on the “My VPN” connection (the VPN connection just created) and choose “Properties”.

Step 5 - Edit the VPN type to L2TP

In the “Properties” of new VPN connection, click on the “Type of VPN” pop up menu and select “L2TP/IPsec”.

Next, click on the “Advanced Settings” button.

Step 6 - Set the Preshared Key

In the “IPsec Settings” dialog, click the radio button labelled “Use preshared key for authentication”. Then type our key into the textbox labelled “Key”. Then click the “OK” button.

Done! You’re now done with your setup! You’ve set up your VPN connection to use L2TP. Click “OK” to finish now, then connect to our VPN server by this connection