This article was previously published under Q289732
This article has been archived. It is offered "as is" and will no longer be updated.
When you create a virtual private network (VPN) connectoid to the IP address of an RRAS server that has Microsoft Challenge-Handshake Authentication Protocol (MS-CHAP) authentication enabled, the VPN may not work.
This behavior occurs if you turn on the Store password using reversible encryption setting in the Local Computer Policy snap-in for Microsoft Management Console (MMC) and you also configure the advanced settings on the Security tab of the VPN connection as follows:
In the Data encryption box, click No encryption allowed.
In the Logon security box, click Use Extensible Authentication, and click MD5-Challenge from the drop-down box.
To resolve this problem, obtain the latest service pack for Windows 2000. For additional information, click the following article number to view the article in theMicrosoft Knowledge Base:
260910 How to Obtain the Latest Windows 2000 Service Pack
Microsoft has confirmed that this is a problem in the Microsoft products that are listed at the beginning of this article.
This problem was first corrected in Windows 2000 Service Pack 2.