Lion Server: Unable to connect to L2TP VPN server using full name

When trying to connect to a Lion Server L2TP VPN server from a Lion client, you may receive an alert stating "The L2TP-VPN server did not respond. Try reconnecting. If the problem continues, verify your settings and contact your Administrator."

The user account's shortname should be used when logging in. Using the account's long name will result in the above issue.

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Mac OS X v10.6 clients may receive a message that authentication did not work.