For anybody else having this issue, I got this working now. So, I found out that my router was not forwarding the gre packets (link sys router wrt45gs). First thing I did was update my firmware for the router. After that it still was not connecting my vpn. (again my vpn is a single nic vpn on my windows 2003 server, router was appropriately forwarded to the correct vpn typical port).
I rebooted my vpn server 3 times and recreated the vpn then rebooted the ipad. Finally got the vpn to authenticate and connected, but it wasn't connecting to my local rdp then. So rebooted AGAIN both the computer AND the router and it now Finally connects every time.
Now, I don't know if it was due to the ipad (Since all my other desktop connections would connect and all the reboots), but it now works perfect and proper every time. The reason why i needed this is to test out a vmware pcoip connection (which works now, but ONLY through a VPN currently). This is why I needed the VPN connection. Also, this is testing which is why i was connecting through a single nic. Thanks.
