I was setting up my laptop with a new install of Fedora Core 3 and decided to setup VPN to my office. Everything went great using PPTP Client. I noticed that I had to turn off encryption on the client for the connection to work, strange. When I turned on encryption I received this error MPPE required but peer negotiation failed which lead me to this article which shows the default policy is to accept clients with no encryption! What is the point of creating a VPN tunnel with no encryption! Dam M$!

If you are a system administrator, please check the policy for remote access and uncheck the No Encryption required!