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Setup L2TP/IPsec VPN in Windows XP

Step 1 - Navigate to Windows XP Network Connections "Create a New Connection"

Open the Windows Control Panel, then select the Network Connections item in Control Panel. A list of existing dial-up and LAN connections will appear. Choose the "Create a new connection" item from the left-hand side of the window as shown below.

Step 2 - Start the Windows XP New Connection Wizard

A new window now appears on the screen titled "New Connection Wizard" as shown below. Windows XP will now ask you a series of questions to configure the new VPN connection. Click Next to begin the procedure.

Step 3 - Specify Workplace Connection Type

On the Network Connection Type page of the Windows XP New Connection wizard, choose the "Connect to the network at my workplace" item from the list as shown below. Click Next.

Step 4 - Choose Virtual Private Network (VPN) Connection

On the Network Connection page of the wizard, choose the "Virtual Private Network connection" option shown below. Click Next.


In rare cases, the options on this page will be disabled (grayed out), preventing you from making the desired selection. If you cannot proceed for this reason, exit the wizard application, and consult the following Microsoft article for detailed assistance:
Cannot Create a Network Connection... - Windows XP

Step 5 - Enter VPN Connection Name

Enter a name for the new VPN connection in the "Company Name" field of the Connection Name page as shown below.

Note that the name chosen need not match the name of an actual business. While no practical limits exist on what may be entered in the "Company Name" field, choose a connection name that will be easy to recognize later.
Click Next

Step 6 - Choose a Public Network Connection Option

Choose an option on the Public Network page.

Choose the "Do not dial the initial connection" option. This option requires that a public Internet connection be established first, before this new VPN connection will be initiated.
Otherwise,, use the default option shown , "Automatically dial this initial connection," if the VPN connection will always be initiated when the computer is not already connected to the Internet.
Click Next

Step 7 - Identify the VPN Server by Name or IP Address

On the VPN Server Selection page shown below, enter the name or IP address of the VPN remote access server to connect to. VPN network administrators will provide you this information

Take special care to key the VPN server name/IP address data correctly. The Windows XP wizard does not automatically validate this server information.
Click Next

Step 8 - Select Availability of the New Connection

Choose an option on the Connection Availability page.

The default option shown below, "My Use Only," ensures that Windows will make this new connection available only to the currently logged on user.
Otherwise, choose the "Anyone's use" option. This option allows any user of the computer access to this connection
Click Next

Step 9 - Completing the New VPN Connection Wizard

Click Finish to complete the wizard as shown below. If necessary, first click Back to review and change any settings made previously. When Finish is clicked, all settings associated with the VPN connection will be saved.


If desired, click Cancel to abort the VPN connection setup. When Cancel is chosen, no VPN connection information or settings will be saved.

Step 10 - Choose “Type of VPN”

Right click the new connection and select properties to open the properties window. Select the Networking tab and in the “Type of VPN” drop down list, choose L2TP VPN.

Step 11 - Input IPsec Settings

Click the Security tab, then click the "IPsec Settings" button:

In the next window, click the checkbox and type the key and click OK

Press OK to close the window and return to the network connections window

Step 12 - Login the New VPN and start to use

If you double click your VPN connection the logon window will appear.Enter your username and password and click Connect. After the authentication process is complete, you will be logged on to the VPN Server and two computers will appear at the bottom right hand corner of your screen (default).