Under authentication MSCHAPv2 should be the only checked option. Under MPPE encryption 128 bit should be the only checked option. Leave Use IPsec encryption unchecked

Click Apply

3.Setup policies for the new tunnel, Firewall->Policy:Click Global policy parameters

Enable Allow all VPN traffic: internal->VPN, VPN->internal and VPN->VPN Click Apply

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D-Link DFL-700 manual