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."
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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.

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