Ok, so our solution was strange.
It was suggested to me to change the starting Client Addresses to something entirely different (our DHCP server was using 192.168.1.100 thru 200, the server VPN was set up at 192.168.1.201 with 30 available), as soon as I changed it to 10.1.1.100 the client was able to connect! Of course the client couldn't get to anything else on the network.
So I changed the Client Addresses to 192.168.1.210 with 10 available and clients can still connect and get on to our network! Strange.
Here's what the log looked like during the client connection attempts. The part that was suspicious to me was "Unsupported protocol 0x8057 received".
Jul 21 14:54:58 ASMIserver.private pppd[5261]: L2TP incoming call in progress from '192.168.1.254'...
Jul 21 14:54:58 ASMIserver.private pppd[5261]: L2TP connection established.
Jul 21 14:54:58 ASMIserver kernel[0]: ppp0: is now delegating en1 (type 0x6, family 2, sub-family 0)
Jul 21 14:54:58 ASMIserver.private pppd[5261]: Connect: ppp0 <--> socket[34:18]
Jul 21 14:54:58 ASMIserver.private pppd[5261]: CHAP peer authentication succeeded for xxxxx
Jul 21 14:54:58 ASMIserver.private pppd[5261]: DSAccessControl plugin: User 'xxxxxxx' authorized for access
Jul 21 14:54:58 ASMIserver.private pppd[5261]: Unsupported protocol 0x8057 received
Jul 21 14:55:12 ASMIserver.private pppd[5261]: IPCP: Maximum Config-Requests exceeded
Jul 21 14:55:48 --- last message repeated 2 times ---
Jul 21 14:55:48 ASMIserver.private pppd[5261]: IPCP: Maximum Config-Requests exceeded
Jul 21 14:56:14 --- last message repeated 2 times ---
Jul 21 14:56:14 ASMIserver com.apple.xpc.launchd[1] (com.apple.screensharing[5307]): Endpoint has been activated through legacy launch(3) APIs. Please switch to XPC or bootstrap_check_in(): com.apple.screensharing.server
Jul 21 14:56:15 ASMIserver.private pppd[5261]: IPCP: Maximum Config-Requests exceeded
Jul 21 14:56:45 --- last message repeated 3 times ---
Jul 21 14:56:45 ASMIserver.private pppd[5261]: IPCP: Maximum Config-Requests exceeded